Podcast
Questions and Answers
What point represents market equilibrium?
What point represents market equilibrium?
- A
- D
- C (correct)
- B
In a market, why do all sales and purchases take place at the same price?
In a market, why do all sales and purchases take place at the same price?
- Different stores have different prices.
- There is a uniform price in well-established markets. (correct)
- Consumers have time to compare prices.
- Prices are always negotiable.
What happens if the market price is above the equilibrium price?
What happens if the market price is above the equilibrium price?
- There is a shortage of the good.
- The quantity supplied exceeds the quantity demanded. (correct)
- Demand decreases.
- There is a surplus of the good.
What will sellers do if there is a surplus in the market?
What will sellers do if there is a surplus in the market?
If the market price falls below the equilibrium price, what will happen?
If the market price falls below the equilibrium price, what will happen?
What occurs when there is a surplus of a good in the market?
What occurs when there is a surplus of a good in the market?
What is the condition for a market to be in equilibrium?
What is the condition for a market to be in equilibrium?
Why does the price that wholesale cotton farmers receive end up being less than the price paid by retail cotton buyers?
Why does the price that wholesale cotton farmers receive end up being less than the price paid by retail cotton buyers?
What happens to the market price if the quantity demanded exceeds the quantity supplied?
What happens to the market price if the quantity demanded exceeds the quantity supplied?
How do changes in the number of producers entering and exiting the market affect overall supply?
How do changes in the number of producers entering and exiting the market affect overall supply?
In what scenario would consumer surplus be maximized?
In what scenario would consumer surplus be maximized?
What happens to producer surplus if producers anticipate a decrease in future prices?
What happens to producer surplus if producers anticipate a decrease in future prices?
If consumers are willing to pay more than the equilibrium price, what economic concept are they benefiting from?
If consumers are willing to pay more than the equilibrium price, what economic concept are they benefiting from?
What happens to consumer surplus if the equilibrium price falls below what consumers are willing to pay?
What happens to consumer surplus if the equilibrium price falls below what consumers are willing to pay?
If garden gnomes regain popularity, what is the most likely effect on the equilibrium price and quantity?
If garden gnomes regain popularity, what is the most likely effect on the equilibrium price and quantity?
If the cost of wood falls, what would be the impact on the equilibrium price and quantity in the violin market?
If the cost of wood falls, what would be the impact on the equilibrium price and quantity in the violin market?
When producers are willing to sell at a price lower than the equilibrium price, which concept are they benefiting from?
When producers are willing to sell at a price lower than the equilibrium price, which concept are they benefiting from?
What is the likely outcome for consumer surplus if the supply curve shifts to the left?
What is the likely outcome for consumer surplus if the supply curve shifts to the left?
