#1
What does market equilibrium refer to?
A situation where supply exceeds demand
A situation where demand exceeds supply
A situation where supply equals demand
A situation where demand equals zero
#2
Which of the following factors does NOT affect market equilibrium?
Changes in consumer preferences
Changes in production costs
Government regulations
Changes in the weather
#3
Which of the following is NOT a determinant of supply that can shift the supply curve?
Technology
Taxes
Input prices
Consumer preferences
#4
When the market is in equilibrium, what statement is true?
Quantity demanded equals quantity supplied
Quantity demanded exceeds quantity supplied
Quantity supplied exceeds quantity demanded
Quantity demanded is unrelated to quantity supplied
#5
What is the term used to describe a situation where the quantity supplied exceeds the quantity demanded at the current price?
Market equilibrium
Surplus
Shortage
Price ceiling
#6
What factor would NOT cause a shift in the demand curve?
Changes in income
Changes in the price of related goods
Changes in technology
Changes in consumer preferences
#7
What happens to the market equilibrium price and quantity if there is an increase in both demand and supply?
Price increases, quantity increases
Price decreases, quantity increases
Price decreases, quantity decreases
Price increases, quantity decreases
#8
Which of the following is a determinant of demand that can shift the demand curve?
Price of substitutes
Cost of production
Number of suppliers
Government policies
#9
What is the effect of a price ceiling below the equilibrium price?
It leads to a surplus of the good
It leads to a shortage of the good
It has no effect on the market
It eliminates the market equilibrium
#10
What happens to consumer surplus when a market moves from a state of surplus to equilibrium?
Consumer surplus increases
Consumer surplus decreases
Consumer surplus remains unchanged
Consumer surplus becomes negative
#11
What is the impact of a subsidy on market equilibrium?
It increases equilibrium price and quantity
It decreases equilibrium price and quantity
It decreases equilibrium price, increases quantity
It increases equilibrium price, decreases quantity
#12
Which of the following is an example of a price floor?
Minimum wage laws
Subsidies for farmers
Tax breaks for corporations
Sales tax on luxury goods
#13
In the context of market equilibrium, what happens when there is excess demand?
Price increases, quantity supplied exceeds quantity demanded
Price decreases, quantity demanded exceeds quantity supplied
Price decreases, quantity supplied exceeds quantity demanded
Price increases, quantity demanded equals quantity supplied
#14
What effect does a decrease in production costs have on market equilibrium?
Increases equilibrium price and quantity
Decreases equilibrium price and quantity
Increases equilibrium price, decreases quantity
Decreases equilibrium price, increases quantity
#15
What is the effect of a decrease in the price of a complementary good on market equilibrium?
Increases equilibrium price and quantity
Decreases equilibrium price and quantity
Increases equilibrium price, decreases quantity
Decreases equilibrium price, increases quantity
#16
In the context of market equilibrium, what happens when there is excess supply?
Price increases, quantity supplied exceeds quantity demanded
Price decreases, quantity demanded exceeds quantity supplied
Price decreases, quantity supplied exceeds quantity demanded
Price increases, quantity demanded equals quantity supplied
#17
What is the impact of an increase in the price of a substitute good on market equilibrium?
Increases equilibrium price and quantity
Decreases equilibrium price and quantity
Increases equilibrium price, decreases quantity
Decreases equilibrium price, increases quantity
#18
What happens to market equilibrium when there is a decrease in production costs?
Equilibrium price decreases, equilibrium quantity increases
Equilibrium price increases, equilibrium quantity decreases
Equilibrium price and quantity both increase
Equilibrium price and quantity both decrease