Understanding Economic Equilibrium: Key Concepts and Questions
School
The American School of Dubai**We aren't endorsed by this school
Course
SOC 315
Subject
Economics
Date
Dec 10, 2024
Pages
2
Uploaded by BailiffLemurPerson1227
1. What is the primary condition for achieving economic equilibrium in a market?A) Supply exceeds demand B) Demand exceeds supply C) Supply equals demand D) Government intervention is present 2. In a supply and demand graph, the equilibrium point is found at the intersection of which two curves?A) Price and quantity B) Supply and demand C) Cost and revenue D) Consumer surplus and producer surplus 3. If the market price is set above the equilibrium price, what is likely to occur?A) A shortage of goods B) An increase in demand C) A surplus of goods D) Economic stability 4. Which of the following factors can shift the demand curve, potentially affecting the equilibrium point?A) Changes in production costs B) Changes in consumer preferences C) Changes in the number of suppliers D) Changes in government regulations
5. When a new technology reduces production costs, what is the likely effect on the supply curve and the equilibrium point?A) The supply curve shifts left; equilibrium price increases B) The supply curve shifts right; equilibrium price decreases C