Market Equilibrium and Forces Affecting it Quiz

Balanced state where supply meets demand without excess or shortage.

External environmental conditions not directly related to supply and demand.

Consumer choices impacting demand rather than direct supply.

Perfect balance between what consumers want and what producers offer.

Oversupply of goods in relation to consumer demand at prevailing price.

Technological advancements typically affect supply and production efficiency, not demand.

Increased availability reduces price but doesn't fully compensate for increased demand.

Changes in substitute good prices affecting consumer choices.

Artificial limit below market equilibrium causing imbalance in supply and demand.

Shift from excess supply to equilibrium increases consumer benefit.

Financial support lowering production costs and retail price, boosting sales.

Legislative measure ensuring minimum price for labor to prevent exploitation.

Lack of supply at current price leads to price adjustments but still insufficient quantity.

Cost efficiency allowing price reduction while encouraging higher production.

Lower cost of related goods boosts demand and overall market activity.

Excess availability prompts price reduction due to unsold inventory.

Higher cost of alternative products reduces demand for the original item, lowering market equilibrium.

Lower costs enable producers to offer more goods at a lower price, increasing equilibrium quantity and reducing price.