Market Equilibrium Pre-Assessment - Donald Taylor | Library

Instructions

The first six questions must be completed by selecting the correct definition for each vocabulary word. Questions #7-8 are multiple choice questions specifically focused on equilibrium. The final bonus question does not count towards the quiz grade but must be completed.

1

Market Economy

1

Demand

1

Supply

1

Shortage

1

Surplus

1

Equilibrium Price

2

In a competitive market economy, what typically happens if the price is set above the equilibrium price?

2

What is the primary role of supply and demand in determining the price of goods and services in a market?

0

BONUS QUESTION: Explain how changes in both supply and demand can affect the price of goods and services in a competitive market. Provide an example to support your explanation. (3-5 sentences)