Pretest

Question 1

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

Revolt · Accepted Answer

excess supply

Question 2

Which occurs during market equilibrium? Choose two correct answers.

Revolt · Accepted Answer

Supply and demand meet at a specific price.; Supply and demand meet at a specific quantity.

Question 3

A car dealer who does not have enough customers for a supply of new cars faces

Revolt · Accepted Answer

disequilibrium.

Question 4

Both excess supply and excess demand are a result of

Revolt · Accepted Answer

disequilibrium.

Question 5

Disequilibrium occurs when

Revolt · Accepted Answer

quantity supplied does not equal quantity demanded.

Question 6

Which explains the connection between the law of demand and excess demand?

Revolt · Accepted Answer

The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.

Question 7

In order to achieve equilibrium, what else must be included on the graph?

Revolt · Accepted Answer

supply curve

Question 8

If the quantity supplied is greater than the quantity demanded, what must happen to the price in order to reach equilibrium?

Revolt · Accepted Answer

The price of the product will decrease to meet equilibrium.

Pretest Answers