micro drills10 questions

Market Equilibrium — Practice Set 1

Equilibrium is where quantity demanded equals quantity supplied. These questions drill the mechanics of finding it and the pressures that push markets toward it.

Q1.

Market equilibrium occurs at the price where:

Multiple choice · Foundations

Q2.

Given Qd = 100 - 2P and Qs = 20 + 3P, the equilibrium price is:

Multiple choice · Intermediate

Q3.

At a price above equilibrium, the market experiences:

Multiple choice · Foundations

Q4.

At a price below equilibrium, the market experiences:

Multiple choice · Foundations

Q5.

If demand increases while supply stays constant, equilibrium price ___ and equilibrium quantity ___.

Multiple choice · Intermediate

Q6.

If supply decreases while demand stays constant, equilibrium price ___ and equilibrium quantity ___.

Multiple choice · Intermediate

Q7.

Demand and supply both increase. The effect on equilibrium quantity is ___ and on price is ___.

Multiple choice · Advanced

Q8.

A market is in disequilibrium when:

Multiple choice · Foundations

Q9.

The 'invisible hand' refers to:

Multiple choice · Intermediate

Q10.

If Qd = 50 - P and Qs = 10 + P, a price of $30 creates:

Multiple choice · Intermediate