Market Equilibrium Quiz

Market Equilibrium: ten questions on equilibrium and shifts. Includes calculations; answers explained.

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For High school students and adults reviewing the topic.

About 10 minutes. 10 questions.

How does it work?

Choose one answer or enter a number in the stated unit, then check it.
Read the explanation before continuing.
Round only the final answer to the precision requested.

What will you get?

See your score and review the reasoning behind each answer.

Question 1A stall has Qd = 150 − 6P and Qs = 30 + 4P. Find the clearing price in dollars, rounded to two decimal places.

Enter a number in dollars.

Answers within 0.01 dollars of the expected value are accepted.

Question 2With Qd = 180 − 4P and Qs = 20 + 6P, how many units clear the market? Round to two decimal places.

Enter a number in units.

Answers within 0.01 units of the expected value are accepted.

Question 3Orders follow Qd = 140 − 3P and Qs = 20 + 2P. At a price of $18, find the shortage in units, rounded to two decimal places.

Enter a number in units.

Answers within 0.01 units of the expected value are accepted.

Question 4A market has Qd = 130 − 2P and Qs = 10 + 3P. At $30, find the surplus in units, rounded to two decimal places.

Enter a number in units.

Answers within 0.01 units of the expected value are accepted.

Question 5A shop lowers its posted price while incomes and tastes stay fixed. How is the resulting increase in purchases represented?

An outward shift of the demand curveAn inward shift of the existing supply curveA change in buyers’ underlying preferencesMovement along the existing demand curve

Question 6A crop disease raises production costs while buyers’ preferences stay fixed. What follows in the usual supply and demand model?

A lower price and a larger traded quantityA higher price and a smaller traded quantityA higher price and a larger traded quantityA lower price and a smaller traded quantity

Question 7Demand rises while supply falls. Which conclusion follows without knowing the relative sizes of the shifts?

Price rises; the quantity change is undeterminedPrice falls; the quantity change is undeterminedQuantity rises; the price change is undeterminedQuantity falls; the price change is undetermined

Question 8Tickets clear the market at a price beyond a household’s budget. What does the intersection establish?

The allocation meets a standard of equal accessThe planned purchases match planned sales at the clearing priceThe event serves the people with greatest needThe clearing price accounts for the event’s wider social effects

Question 9New orders arrive faster than a workshop can fill them at its current price. With prices free to adjust, what pressure does this create?

An incentive to reduce the posted chargeAn incentive to classify orders as extra supplyAn incentive to raise the posted chargeAn incentive to add unfilled orders to the stock available for sale

Question 10A housing market receives a sudden increase in demand. Why might rents respond before many new homes appear?

Housing demand determines the speed of building directlyHigher rental values count as an increase in the physical housing stockConstruction takes time to expand available stockPlanning and building capacity expand at the same speed as rents

Answer every question to see and share your score.

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