Determination of Equilibrium Market Prices (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
At what point does market equilibrium occur?
At what point does market equilibrium occur?
Where quantity demanded equals quantity supplied
What is excess supply also known as?
What is excess supply also known as?
A surplus
What happens when the market price is below equilibrium?
What happens when the market price is below equilibrium?
Excess demand occurs
In which direction does the market demand curve slope?
In which direction does the market demand curve slope?
Downward from left to right
In which direction does the market supply curve slope?
In which direction does the market supply curve slope?
Upward from left to right
When supply increases, what happens to equilibrium price and quantity?
When supply increases, what happens to equilibrium price and quantity?
Price falls, quantity rises
When demand increases, what happens to equilibrium price and quantity?
When demand increases, what happens to equilibrium price and quantity?
Both price and quantity rise
How does the market eliminate excess supply?
How does the market eliminate excess supply?
Producers reduce their prices
When price is above equilibrium, who is on the short side of the market?
When price is above equilibrium, who is on the short side of the market?
Consumers
What causes a shift of an entire curve rather than movement along it?
What causes a shift of an entire curve rather than movement along it?
Factors other than price