How Markets Work (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What occurs at market equilibrium?
What occurs at market equilibrium?
Quantity demanded equals quantity supplied
When does excess supply occur in a market?
When does excess supply occur in a market?
When price is set above equilibrium
What pressure does excess demand create?
What pressure does excess demand create?
Upward pressure on price
What is the role of the price mechanism?
What is the role of the price mechanism?
It signals firms and consumers to adjust
What happens when demand for a good increases?
What happens when demand for a good increases?
Both equilibrium price and quantity rise
If production costs fall, what happens to equilibrium?
If production costs fall, what happens to equilibrium?
Price falls and quantity rises
What occurs when supply decreases?
What occurs when supply decreases?
Price rises and quantity falls
What is an extension of demand?
What is an extension of demand?
Movement down the demand curve
If the price of fresh pasta falls, what happens to demand for dried pasta?
If the price of fresh pasta falls, what happens to demand for dried pasta?
Demand curve for dried pasta shifts left
Why do strawberry prices fall in summer?
Why do strawberry prices fall in summer?
Supply increases as more farms harvest