Podcast
Questions and Answers
What happens to the quantity supplied when there is a shortage in the market for coffee?
What happens to the quantity supplied when there is a shortage in the market for coffee?
- It fluctuates randomly.
- It decreases.
- It increases. (correct)
- It remains constant.
What is the impact of a price above the equilibrium price in the market for coffee?
What is the impact of a price above the equilibrium price in the market for coffee?
- It has no effect on the market.
- It leads to a decrease in demand.
- It causes a shortage.
- It results in a surplus. (correct)
How do sellers typically respond to a surplus in the market for coffee?
How do sellers typically respond to a surplus in the market for coffee?
- By increasing prices.
- By exiting the market.
- By maintaining prices.
- By decreasing prices. (correct)
What does a shortage indicate in the market for coffee?
What does a shortage indicate in the market for coffee?
How does the quantity of coffee supplied change when the price of coffee begins to fall?
How does the quantity of coffee supplied change when the price of coffee begins to fall?
What happens to the supply curve in response to a reduction in price?
What happens to the supply curve in response to a reduction in price?
At what point does price stop falling and reach its equilibrium level?
At what point does price stop falling and reach its equilibrium level?
What defines a surplus in a market?
What defines a surplus in a market?
Why is there no surplus at the equilibrium price?
Why is there no surplus at the equilibrium price?
What does it mean when the demand and supply curves intersect?
What does it mean when the demand and supply curves intersect?
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