Market Equilibrium Pre-Assessment

Last updated over 2 years ago

9 questions

Instructions

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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.

Market Economy

An economy where the government controls all aspects of production and distribution.

An economy where prices are determined by supply and demand, with little government intervention.

An economy where prices are set by a central authority without regard for supply and demand.

An economy where prices fluctuate wildly without any regulation.

Demand

The amount of a good or service that producers are willing and able to sell at a given price.

The quantity of a good or service that consumers are willing and able to buy at a given price.

The point where supply and demand intersect in a market.

The price at which producers are willing to supply a good or service.

Supply

The quantity of a good or service that producers are willing and able to sell at a given price.

The amount of a good or service that consumers are willing and able to buy at a given price.

The point where demand and price intersect in a market.

The price at which consumers are willing to buy a good or service.

Shortage

A situation in which the government controls the price of a good or service.

A situation in which supply and demand are perfectly balanced.

A situation in which the quantity supplied exceeds the quantity demanded at a given price.

A situation in which the quantity demanded exceeds the quantity supplied at a given price.

Surplus

A situation in which the quantity supplied exceeds the quantity demanded at a given price.

A situation in which supply and demand are perfectly balanced.

A situation in which the quantity demanded exceeds the quantity supplied at a given price.

A situation in which the government controls the price of a good or service.

Equilibrium Price

The price at which producers are willing to supply a good or service.

The price at which consumers are willing to buy a good or service.

The point where supply and demand are equal in a market.

The difference between the quantity demanded and the quantity supplied in a market.

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

Excess demand occurs

Excess supply occurs

The market collapses

The market experiences perfect equilibrium

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

Supply alone determines price

Demand alone determines price

Both supply and demand interact to determine price

Price is determined by government regulations only

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)

Market Economy

An economy where the government controls all aspects of production and distribution.

An economy where prices are determined by supply and demand, with little government intervention.

An economy where prices are set by a central authority without regard for supply and demand.

An economy where prices fluctuate wildly without any regulation.

Demand

The amount of a good or service that producers are willing and able to sell at a given price.

The quantity of a good or service that consumers are willing and able to buy at a given price.

The point where supply and demand intersect in a market.

The price at which producers are willing to supply a good or service.

Supply

The quantity of a good or service that producers are willing and able to sell at a given price.

The amount of a good or service that consumers are willing and able to buy at a given price.

The point where demand and price intersect in a market.

The price at which consumers are willing to buy a good or service.

Shortage

A situation in which the government controls the price of a good or service.

A situation in which supply and demand are perfectly balanced.

A situation in which the quantity supplied exceeds the quantity demanded at a given price.

A situation in which the quantity demanded exceeds the quantity supplied at a given price.

Surplus

A situation in which the quantity supplied exceeds the quantity demanded at a given price.

A situation in which supply and demand are perfectly balanced.

A situation in which the quantity demanded exceeds the quantity supplied at a given price.

A situation in which the government controls the price of a good or service.

Equilibrium Price

The price at which producers are willing to supply a good or service.

The price at which consumers are willing to buy a good or service.

The point where supply and demand are equal in a market.

The difference between the quantity demanded and the quantity supplied in a market.

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

Excess demand occurs

Excess supply occurs

The market collapses

The market experiences perfect equilibrium

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

Supply alone determines price

Demand alone determines price

Both supply and demand interact to determine price

Price is determined by government regulations only