The equilibrium price is a point at which buyers’ demand for a product and sellers’ supply of it are in balance.
举一反三
- When sellers supply more of the product than buyers are willing to purchase, a ______ is created. A: shortage B: supply and demand schedule C: surplus D: demand
- Which of the following always raises the equilibrium price? A: an increase in both demand and supply B: a decrease in both demand and supply C: an increase in demand combined with a decrease in supply D: a decrease in demand combined with an increase in supply
- In a supply and demand figure, the equilibrium price and quantity are found at the A: point where quantity supplied equals quantity demanded. B: horizontal intercept of the demand curve. C: vertical intercept of the supply curve. D: horizontal intercept of the supply and the demand curves.
- Which of the following will definitely occur when there is an increase in demand for and a decrease in supply of milk? A: an increase in equilibrium quantity B: a decrease in equilibrium quantity C: a decrease in equilibrium price D: an increase in equilibrium price.
- Which of the following is a characteristic of perfect competition? A: . A single seller. B: . A small number of buyers. C: . Buyers and sellers are price setters. D: . Buyers and sellers are price takers.