AnswersGalliWCA 2221 CivicsEconomics 1st nine weeks 26-27Determining Market Price

Determining Market Price Answers

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The graph shows excess supply.Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?

Question illustration
I
It needs to be increased.
I
It needs to be decreased.
I
It needs to reach the price ceiling.
I
It needs to remain unchanged.
2
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What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

e
excess supply
s
stable prices
e
exact equilibrium
i
increased production
3

On a graph, an equilibrium point is where

a
a supply curve and a demand curve meet.
a
a supply curve is higher than a demand curve.
t
the supply and demand curves head up.
t
the supply and demand curves head down.
4

The graph shows excess demand.Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

Question illustration
A
As prices fall, quantity demanded goes up.
A
As prices fall, quantity demanded goes down.
A
As prices fall, quantity demanded stays the same.
A
As prices fall, quantity demanded disappears.
5

The graph shows excess demand.Which needs to happen in order to stop disequilibrium from occurring?

Question illustration
Q
Q needs to be coordinated with supply.
Q
Q needs to be coordinated with demand.
T
The price of goods needs to be increased.
T
The price of goods needs to be decreased.
6

The graph shows a point of equilibrium.How many goods must be supplied to achieve equilibrium?

Question illustration
1
15
2
20
2
25
3
30
7

Which explains the connection between the law of demand and excess demand?

T
The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.
T
The law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand.
T
The law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand.
T
The law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand.
8

The graph shows a point of equilibrium.What does "P" represent on the graph?

Question illustration
t
the point where equilibrium is achieved
t
the price at the equilibrium point
t
the average price of goods sold
t
the point where supply and demand drop
9

Disequilibrium occurs when

q
quantity supplied is equal to quantity demanded.
q
quantity supplied does not equal quantity demanded.
s
supply coordinates with price.
s
supply coordinates with quantity.

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