Multiple Choice
When a shortage is eliminated in a market, which of the following occurs?
100
views
3. The Market Forces of Supply and Demand
Market Equilibrium
Multiple Choice
Refer to Table 4-6. The equilibrium price and quantity, respectively, are:
A
the highest price listed in the table and the lowest quantity supplied
B
the price at which quantity demanded equals quantity supplied, and the corresponding quantity
C
the price at which quantity supplied exceeds quantity demanded, and the corresponding quantity
D
the lowest price listed in the table and the highest quantity demanded
Verified step by step guidance1
Understand the concept of market equilibrium: it occurs where the quantity demanded equals the quantity supplied.
Identify the prices and corresponding quantities demanded and supplied from the table (Table 4-6).
For each price, compare the quantity demanded and quantity supplied to find where they are equal.
The equilibrium price is the price at which quantity demanded equals quantity supplied.
The equilibrium quantity is the quantity at that equilibrium price.
Related Videos
Related Practice
