Podcast
Questions and Answers
What occurs when supply is greater than demand in the market?
What occurs when supply is greater than demand in the market?
- Excess supply (correct)
- Equilibrium
- Market balance
- High demand
What is the signaling function in the market?
What is the signaling function in the market?
- The effect of inflation on buying habits
- The role of competition in setting prices
- How prices inform production decisions (correct)
- The ability of consumers to influence supply
When prices fall in a market experiencing disequilibrium, what does it signal to consumers?
When prices fall in a market experiencing disequilibrium, what does it signal to consumers?
- To wait for further price changes
- To buy less
- To stop purchasing
- To buy more (correct)
Which function allows the market to adjust through changes in price?
Which function allows the market to adjust through changes in price?
In Nigeria, increased demand leads to which of the following market responses?
In Nigeria, increased demand leads to which of the following market responses?
Flashcards
Market Disequilibrium
Market Disequilibrium
A market situation where supply is greater than demand.
Excess Supply
Excess Supply
A market condition when supply surpasses demand.
Market Mechanism
Market Mechanism
The process through which prices adjust to balance supply and demand.
Signaling Function
Signaling Function
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Rationing Function
Rationing Function
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