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Mic7: Market equilibirum, Surplus, Shortage

Last updated about 6 years ago

5 questions

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1

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Question 1

1.

Where is the market equilibrium price and quantity in the graph above?

$.80 and 200 units

$2 and 500 units

$1.60 and 400 units

$1.20 and 300 units

Question 2

2.

when price is $1.60 does it create a surplus or shortage in the graph above, and how big is it?

Shortage of 200 units

Shortage of 100 units

Surplus of 400 units

Surplus of 200 units 

Question 3

3.

when price is $.40 does it create a surplus or shortage in the graph above, and how big is it?

Surplus of 100 units

Shortage of 300 units

Surplus of 400 units

Shortage of minus 400 units

Question 4

4.

If the price of chocolate bars is initially $1.60, what will have to happen to bring the market to equilibrium?

Price will decrease and the surplus will disappear

Price will decrease and the shortage will disappear

Price will increase and the shortage will disappear

Price will increase and the surplus will disappear

Question 5

5.

If the price of chocolate bars is initially $.80, what will have to happen to bring the market to equilibirum?

Price will decrease and the surplus will disappear

Price will decrease and the shortage will disappear

Price will increase and the shortage will disappear

Price will increase and the surplus will disappear