2. Supply and Demand
Market Equilibrium — Quiz
Test your understanding of market equilibrium with 5 practice questions.
Practice Questions
Question 1
When the market price is below the equilibrium price, what situation arises in the market?
Question 2
What is the primary characteristic of a market in disequilibrium?
Question 3
If there is a technological advancement in the production of a good, what effect will this have on the equilibrium price and quantity?
Question 4
Which of the following would cause a leftward shift in the supply curve?
Question 5
Consider the demand function $Q_D = 150 - 3P$ and the supply function $Q_S = 2P$. If the market price is $P = 20$, what is the market situation?