2. USAEO Microeconomics

Equilibrium And Comparative Statics — Quiz

Test your understanding of equilibrium and comparative statics with 5 practice questions.

Practice Questions

Question 1

In a perfectly competitive market, what happens to the equilibrium price if there is an increase in demand while supply remains constant?

Question 2

If the supply of a good decreases while demand remains constant, what will happen to the equilibrium quantity?

Question 3

Consider a market for a normal good. If consumer incomes increase, what is the most likely effect on the equilibrium price and quantity?

Question 4

If both demand and supply increase simultaneously, what can we predict about the new equilibrium quantity?

Question 5

Suppose the government imposes a price ceiling below the equilibrium price. What is the likely result in the market?