SHS Economics · Year 2
Market Equilibrium practice questions
How equilibrium price and quantity are determined, and government interference in markets through price floors and ceilings.
12 questions in this topic: 3 recall, 3 applying skills and concepts, 5 strategic thinking and 1 extended thinking. Every one carries a written explanation.
Sample questions
3 of 12 questions in this topic. Sign up to answer them and see the explanations.
- Question 1Strategic thinking
Why is there "neither a surplus nor a shortage" of goods at market equilibrium?
- aBecause the quantity buyers wish to purchase exactly matches the quantity sellers wish to supply at that price
- bBecause the government has fixed both supply and demand at that level
- cBecause prices are not allowed to change at equilibrium
- dBecause sellers have stopped producing the good entirely
- Question 2Strategic thinking
Using the cocoa market table where at GH¢2000 both quantity demanded and quantity supplied equal 500 tons, what can be concluded?
- aGH¢2000 is the equilibrium price, since quantity demanded equals quantity supplied at that price
- bGH¢2000 is a price with a surplus of cocoa
- cGH¢2000 is a price with a shortage of cocoa
- dGH¢2000 has no significance in this cocoa market
- Question 3Strategic thinking
Using the same functions (Qd = 100 − 2P, Qs = 20 + 3P) and equilibrium price P = 16, what is the equilibrium quantity?
- a68 units
- b100 units
- c16 units
- d20 units
Answer these and 9 more on Market Equilibrium
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Start practising freeMore Economics Year 2 topics
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