Question : 4.3   Market Equilibrium 1) Market equilibrium occurs when A) all markets become : 1241463

4.3   Market Equilibrium

1) Market equilibrium occurs when

A) all markets become equal.

B) the quantity demanded equals the quantity supplied.

C) opposing forces pull demand and supply apart.

D) demand and supply move in opposite direction.

E) demand and supply change so that they are equal at all possible prices.

2) Market equilibrium occurs when

A) the quantity demanded equals the quantity supplied.

B) the market is changing rapidly.

C) other things remain the same.

D) buyers get the lowest possible price.

E) everyone who wants the good gets the quantity he or she wants.

3) Market equilibrium

i.can never occur because there are always people who want a good but cannot afford it.

ii.occurs at the intersection of the supply and demand curves.

iii.is the point where the price equals the quantity.

A) ii only

B) iii only

C) ii and iii

D) i only

E) i and ii

4) A surplus of cardboard boxes means that

A) at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied.

B) at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.

C) the current price of a cardboard box is less than the equilibrium price.

D) at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium.

E) More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price.

5) When there is a surplus of snowboards, the

A) demand for snowboards is greater than the supply of snowboards.

B) supply of snowboards is greater than the demand for snowboards.

C) quantity of snowboards demanded is greater than the quantity of snowboards supplied.

D) quantity of snowboards supplied is greater than the quantity of snowboards demanded.

E) price rises to restore the equilibrium.

6) If there is a surplus of tacos, then the

A) quantity of tacos demanded equals the quantity of tacos supplied.

B) quantity of tacos demanded is greater than the quantity of tacos supplied.

C) quantity of tacos demanded is less than the quantity of tacos supplied.

D) market is at equilibrium.

E) supply curve of tacos will shift leftward to eliminate the surplus.

7) When a surplus of rice occurs,

A) the price of rice rises.

B) the price of rice falls.

C) there is a balance between the forces of supply and demand.

D) the quantity demanded is greater than quantity supplied at the current price.

E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus.

8) Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equilibrium price, a

A) shortage exists and the price falls to restore equilibrium.

B) shortage exists and the price rises to restore equilibrium.

C) surplus exists and the price falls to restore equilibrium.

D) surplus exists and the price rises to restore equilibrium.

E) surplus exists but nothing happens until either the demand or the supply changes.

9) Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

A) shortage, so the price falls and quantity demanded increases.

B) surplus, so the price falls and quantity demanded increases.

C) shortage, so the price rises and quantity demanded decreases.

D) surplus, so the price rises and quantity demanded increases.

E) surplus, so the price falls and quantity supplied increases.

10) As a falling price eliminates a surplus in the jersey market,

A) the demand curve for jerseys shifts leftward, and the supply curve of jerseys shifts rightward.

B) consumers increase the quantity of jerseys they demand.

C) producers increase the quantity of jerseys they supply.

D) producers decrease the quantity of jerseys they supply, and buyers decrease the quantity of jerseys they demand.

E) the demand curve for jerseys shifts rightward, and the supply curve of jerseys shifts leftward.