Determining Market Price

Question 1

What is the point at which supply and demand intersect?

Revolt · Accepted Answer

equilibrium point

Question 2

Choose whether each scenario demonstrates equilibrium, surplus, or shortage..

Revolt · Accepted Answer

✔ shortage; The price of a product has dropped greatly, and store owners do not have enough of the item to meet demand.: shortage; Demand for a new truck is beginning to increase, but car dealerships still have too many of these trucks on their lots.: surplus; The price for a popular holiday toy has risen too high, and consumers are not purchasing items in stock on store shelves.: surplus

Question 3

equilibriumshortage✔ surplus

Revolt · Accepted Answer

✔ surplus

Question 4

equilibriumshortage✔ surplus

Revolt · Accepted Answer

✔ surplus

Question 5

Match each term with the correct part of the graph.

Revolt · Accepted Answer

✔ B; Demand curve: B; Supply curve: A; Equilibrium point: C

Question 6

✔ AX BC

Revolt · Accepted Answer

✔ A

Question 7

AB✔ C

Revolt · Accepted Answer

✔ C

Question 8

equilibrium✔ disequilibrium

Revolt · Accepted Answer

✔ disequilibrium

Question 9

supply✔ demand

Revolt · Accepted Answer

✔ demand

Question 10

lower prices✔ higher prices

Revolt · Accepted Answer

✔ higher prices

Determining Market Price Answers

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