In a given market, a competitive equilibrium is described by A) a price only. B) a quantity only. C) the excess supply minus one half of the excess demand. D) the excess supply plus one half of the excess demand. E) a price and a quantity.

If, at the current price, there is a surplus of a good, then: A) the quantity demanded is greater than the quantity supplied. B) the market must be in equilibrium C) the price is above the equilibrium price D) Both A and C.

QUESTION 15 Consider a market where supply and demand are given by Qx = -10 + Px and Qxd=56-2 Px. What is the equilibrium price?

here is the diagram

If E were the old equilibrium in the market for wheat in the figure below, and E' the new one, which of the following could have caused the change? E' (E D' D2 Consumer income rose, causing a supply shift. Bad weather caused a supply shift. Supply and demand both shifted. Consumer income rose, causing a demand shift. All of the above are plausible descriptions. а. b. c. d. e.

III. Market Equilibrium 1. Complete the sentence: The market is in equilibrium when The demand function is Q = 5000 – 10p, and the supply function is Q = 200 + 6p. 2. Determine the equilibrium price and quantity.

Question 4 Suppose there is a decrease in supply in a market where the supply curve slopes upwards and the demand curve slopes downwards. Which of the following would not occur? a) An excess supply. b) A fall in price. c) A fall in supply. d) A fall in the equilibrium level of expenditure. Question 5 Suppose a market is in equilibrium, and then the demand increases. Which of the following would be shown on a graph that illustrated the effects? a) An excess demand at the initial equilibrium price. b) An excess demand at the new equilibrium price. c) An excess supply at the initial equilibrium price. d) An excess supply at the new equilibrium price.

Price of Good X (dollars) E A Quantity of Good X S₂ D3 S₁ D₂

s) Given the following: Demand: P= 160 - 0.02 Q Supply: P= 60+0.03 Q Find the initial equilibrium.

suppose there is a spring producing 100 gallons of water each day, without cost to smith, who owns the land around the spring. nearby farmers need the water due to a recent drought a.) show the resulting equilibrium b.) what is the price elasticity of demand at the equilibrium