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Economics
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12 Feb 2020

Market equilibrium exists when:

 

A) market demand is equal to market supply 

B) market demand exceeds market supply.

C) market supply exceeds market demand.

D) allocative efficient quantity is not equal to the market-clearing price.

E) None of the above.

 

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Elin Hessel
Elin HesselLv2
12 Feb 2020

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Related questions

1. Market equilibrium occurs when

a. demand equals supply

b. quantity demanded equals quantity supplied

c. The consumer expectations match the producer's expectations

d. Efficiency and equal distribution are achieved 

 

2. If a surplus exists in a market, then

a. Price is above market equilibrium and quantity demanded is less than quantity supplied

b. Price is below market equilibrium and quantity demanded is less than quantity supplied

c. Price is above market equilibrium and quantity demanded is greater than quantity supplied

d. Price is below market equilibrium and quantity demanded is greater than quantity supplied

 

3. When the price falls below market equilibrium

a. A surplus occurs

b. A shortage occurs

c. There will be an increase in quantity supplied

d. There will be a leftward shift of the supply curve

 

suppose there is a simultaneous increase in the demand for rice and an increase in the supply of rice. Which of the following will occur as a result of these events?
 
A.) The market-clearing price will fall, but the equilibrium quantity will rise
B.) The market-clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise
C.) The market-clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same
D.) Both the market-clearing price and equilibrium

Supply Price (Ss per hour) 8 9 Demand 1000 2000 3000 4000 5000 6000 7000 8000 Quantity (number of hours of gardening service per month) FIGURE 5-5 14) Refer to Figure 5-5. At the market-clearing price and quantity of $30 per hour and 4000 hours of gardening services purchased, the economic surplus is in the market is the sum of the areas A) below the demand curve, but above the market-clearing price of $30, that is, areas 1, 2, 6. B) below the demand curve, that is, areas 1, 2, 3, 4, 5, 6, 7, 8, 9. C) above the supply curve, but below the market-clearing price of $30, that is, areas 3, 4, 7. D) above the supply curve and below the demand curve, that is, areas 1, 2, 3, 4, 6, 7. E) below the demand curve, up to 400 hours, that is, areas 1, 2, 3, 4, 5, 6, 7, 8.

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