The graph for lipsticks is shown below. Which point represents equilibrium price and quantity?
P4QB: Equilibrium is the intersection between supply & demand curves. Point P4 QB represents the equilibrium point on this graph.
T/F: At the market equilibrium price, both quantity supplied is equal to quantity demanded.
True.
What happens to equilibrium price if supply decreases? a0No change b)Shortage c)Surplus
Shortage; a decrease in supply creates excess demand at the original equilibrium price.
T/F: According to the law of supply and demand; the price of any good or service adjusts the quantity supplied and the quantity demanded to meet that price.
True.The law of supply and demand is an unwritten law that claims that the price of any good or service adjusts the QS, QD to meet that price.
The market for blankets is shown below. Which of the following explains why $7 does not represent an equilibrium price in this market? a)QD is greater than QS b)QD is equal to QS c)Quantity demanded is less than QS
QD is greater than QS.
The graph for light bulbs is shown below. What is the equilibrium price?
6
The market for oranges is shown below. What is the equilibrium quantity?
4 because at this point, both supply and demand curves intersect.
Based on the table below, which of the following would cause a shortage?
Any price below 3
Based on the table below, which of the following would cause a surplus?
Any price above 3.
T/F: The supply and demand tables for apples are below. If apples are selling at 8$, this means that there is an equilibrium.
False: Shortrage; QS is lower than QD at this price.