Question 1
What is meant by inelastic markets?
A.
Price changes sharply when curves shift. B.
S > D — surplus at current price. C.
Where S = D. D.
D > S — shortage at current price.
Question 2
What is meant by elastic markets?
A.
Where S = D. B.
Price adjusts until S = D. C.
Price where quantity demanded equals quantity supplied. D.
Quantity adjusts more than price.
Question 3
Excess demand means:
A.
S = D B.
S > D C.
No market D.
D > S
Question 4
What is meant by equilibrium price?
A.
S > D — surplus at current price. B.
Where S = D. C.
Any market position where S ≠ D. D.
Price where quantity demanded equals quantity supplied.
Question 5
What is meant by extension?
A.
Price changes sharply when curves shift. B.
Movement along curve when price changes. C.
Where S = D. D.
S > D — surplus at current price.
Question 6
What is meant by excess supply?
A.
Any market position where S ≠ D. B.
D > S — shortage at current price. C.
Movement along curve when price changes. D.
S > D — surplus at current price.
Question 7
What is meant by commodities?
A.
Price changes sharply when curves shift. B.
Often inelastic — large price swings. C.
S > D — surplus at current price. D.
New S or D curve from non-price factors.
Question 8
What is meant by disequilibrium?
A.
Where S = D. B.
Often inelastic — large price swings. C.
New S or D curve from non-price factors. D.
Any market position where S ≠ D.
Question 9
At equilibrium:
A.
Quantity demanded equals quantity supplied B.
Government sets price C.
S exceeds D D.
Price is zero
Question 10
What is meant by market clearing?
A.
D > S — shortage at current price. B.
Where S = D. C.
Price changes sharply when curves shift. D.
Price adjusts until S = D.
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