Equilibrium Science Quiz Questions

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  • 1/23 Questions

    1. (Figure: Equilibrium) Refer to the figure. The equilibrium price (in $) is:  

    • 8
    • 10
    • 16
    • 12
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About This Quiz

Explore the dynamics of market equilibrium through this engaging quiz. Assess your understanding of equilibrium prices and quantities, market responses to shortages, and the mechanisms of supply and demand. Ideal for learners interested in economics.

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  • 2. 
    (Figure: Market Equilibrium) According to the figure, the equilibrium price and quantity are - ProProfs

    (Figure: Market Equilibrium) According to the figure, the equilibrium price and quantity are

    • $1 and 4 units.

    • $4 and 8 units.

    • $2 and 4 units.

    • $3 and 6 units.

    Correct Answer
    A. $2 and 4 units.
    Explanation
    The equilibrium price and quantity are determined at the point where the demand and supply curves intersect. In the given figure, the intersection point occurs at a price of $2 and a quantity of 4 units. This means that at this price, the quantity demanded by consumers is equal to the quantity supplied by producers, resulting in a state of balance in the market.

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  • 3. 

    1. A legal maximum price at which a good can be sold is a price:

    • Stabilization.

    • Ceiling.

    • Support.

    • Floor.

    Correct Answer
    A. Ceiling.
    Explanation
    A legal maximum price at which a good can be sold is known as a price ceiling. This means that the price of the good cannot exceed this maximum limit set by the government or regulatory authority. It is called a ceiling because it puts a cap or limit on the price, preventing it from going higher. This is often done to protect consumers and ensure affordability of essential goods or to control inflation.

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  • 4. 
    (Figure: Market Equilibrium) Refer to the figure. At a price of $3, quantity supplied is ______ and quantity demanded is ______, leading to a _______ - ProProfs

    (Figure: Market Equilibrium) Refer to the figure. At a price of $3, quantity supplied is ______ and quantity demanded is ______, leading to a _______

    • 6; 2; surplus of 4 units

    • 2; 6; shortage of 8 units

    • 2; 4; surplus of 2 units

    • 4; 2; shortage of 2 units

    Correct Answer
    A. 6; 2; surplus of 4 units
    Explanation
    At a price of $3, the quantity supplied is 6 and the quantity demanded is 2. This creates a surplus of 4 units. This means that there are 4 more units of the product available than there are buyers willing to purchase at that price.

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  • 5. 

    In free markets, shortages lead to:

    • Lower prices.

    • Higher prices.

    • Surpluses.

    • Unexploited gains from trade.

    Correct Answer
    A. Higher prices.
    Explanation
    In free markets, shortages occur when the demand for a product exceeds its supply. This imbalance leads to an increase in competition among buyers, resulting in higher prices. As the scarcity of the product becomes more evident, buyers are willing to pay more to secure the limited supply available. Therefore, higher prices are the natural consequence of shortages in free markets.

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  • 6. 
    (Figure: Price Controls) Refer to the figure. If the government imposes a price ceiling in this market at a price of $6, the result would be a: - ProProfs

    1. (Figure: Price Controls) Refer to the figure. If the government imposes a price ceiling in this market at a price of $6, the result would be a:

    • surplus of 20 units.

    • Surplus of 10 units.

    • Shortage of 20 units.

    • Shortage of 10 units.

    Correct Answer
    A. Shortage of 20 units.
    Explanation
    If the government imposes a price ceiling at $6, it means that the price cannot go above this level. Looking at the figure, we can see that at a price of $6, the quantity demanded is 30 units, while the quantity supplied is only 10 units. This creates a shortage of 20 units (30 - 10 = 20). Therefore, the correct answer is a shortage of 20 units.

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  • 7. 
    (Table: Equilibrium Price, Quantity) Refer to the table. If the demand curve for the product shifted to the right such that 10 more units of the good are demanded at every price, what is the new equilibrium price?   - ProProfs

    (Table: Equilibrium Price, Quantity) Refer to the table. If the demand curve for the product shifted to the right such that 10 more units of the good are demanded at every price, what is the new equilibrium price?  

    • $12

    • $14

    • $16

    • $18

    Correct Answer
    A. $16
    Explanation
    If the demand curve for the product shifts to the right, it means that there is an increase in demand for the product at every price. This increase in demand will cause the equilibrium price to increase as well. Since the new demand is 10 more units at every price, the equilibrium price will be higher than the previous price. Among the given options, the only price higher than the previous price of $12 is $16. Therefore, the new equilibrium price would be $16.

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  • 8. 
    (Table: Equilibrium Price, Quantity) Refer to the table. If the price in the market was $12, there would be a: - ProProfs

    (Table: Equilibrium Price, Quantity) Refer to the table. If the price in the market was $12, there would be a:

    • Shortage of 10 units.

    • Shortage of 45 units.

    • Surplus of 10 units.

    • Surplus of 35 units.

    Correct Answer
    A. Shortage of 10 units.
    Explanation
    At a price of $12, the quantity demanded is 35 units, while the quantity supplied is only 25 units. This creates a shortage of 10 units, as the quantity demanded exceeds the quantity supplied.

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  • 9. 
    (Figure: Price Ceiling) Refer to the figure. When a price ceiling of $10 is instituted by the government, consumers are able to buy how many units of the product?   - ProProfs

    (Figure: Price Ceiling) Refer to the figure. When a price ceiling of $10 is instituted by the government, consumers are able to buy how many units of the product?  

    • 290 units

    • 310 units

    • 270 units

    • 40 units

    Correct Answer
    A. 270 units
    Explanation
    When a price ceiling of $10 is instituted by the government, consumers are able to buy 270 units of the product. This is because the price ceiling sets a maximum price that can be charged for the product, and at this price, the quantity demanded by consumers is 270 units.

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  • 10. 
    (Table: Equilibrium Price, Quantity) Refer to the table. If the price in the market was $16, there would be a: - ProProfs

    (Table: Equilibrium Price, Quantity) Refer to the table. If the price in the market was $16, there would be a:

    • Shortage of 10 units.

    • shortage of 35 units.

    • Surplus of 10 units.

    • Surplus of 45 units.

    Correct Answer
    A. Surplus of 10 units.
    Explanation
    If the price in the market was $16, there would be a surplus of 10 units. This means that at a price of $16, the quantity supplied would exceed the quantity demanded by 10 units.

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  • 11. 

    1. A tax on sellers of popcorn will:

    • Increase the size of the popcorn market.

    • Reduce the size of the popcorn market.

    • May increase, decrease, or have no effect on the size of the popcorn market.

    • have no effect on the size of the popcorn market.

    Correct Answer
    A. Reduce the size of the popcorn market.
    Explanation
    A tax on sellers of popcorn will reduce the size of the popcorn market because it will increase the cost of producing and selling popcorn. This increase in cost will likely result in higher prices for consumers, which will decrease the demand for popcorn. As a result, sellers will sell less popcorn, leading to a reduction in the size of the market.

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  • 12. 
    (Figure: Equilibrium) Refer to the figure. The equilibrium quantity (in units) is:   - ProProfs

    1. (Figure: Equilibrium) Refer to the figure. The equilibrium quantity (in units) is:  

    • 8

    • 10

    • 16

    • 12

    Correct Answer
    A. 16
    Explanation
    In the figure, the equilibrium quantity is represented by the point where the demand curve and the supply curve intersect. In this case, the point of intersection occurs at a quantity of 16 units. This means that at this quantity, the quantity demanded by consumers is equal to the quantity supplied by producers, resulting in a state of equilibrium. Therefore, the correct answer is 16.

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  • 13. 

    1. A price ceiling creates a ________ when it is set ________.

    • Surplus; below the equilibrium price

    • Surplus; above the equilibrium price

    • Shortage; below the equilibrium price

    • Shortage; above the equilibrium price

    Correct Answer
    A. Shortage; below the equilibrium price
    Explanation
    A price ceiling creates a shortage when it is set below the equilibrium price. This is because when the price ceiling is below the equilibrium price, it artificially restricts the price that sellers can charge for a good or service. As a result, the quantity demanded exceeds the quantity supplied at the lower price, leading to a shortage in the market.

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  • 14. 
    (Figure: Price Ceiling) Refer to the figure. A price ceiling of $10 results in a: - ProProfs

      1. (Figure: Price Ceiling) Refer to the figure. A price ceiling of $10 results in a:

    • Shortage of 270 units. shortage of 270 units.

    • Shortage of 40 units.

    • Surplus of 270 units.

    • Surplus of 40 units.

    Correct Answer
    A. Shortage of 40 units.
    Explanation
    The correct answer is "shortage of 40 units." A price ceiling sets a maximum price that can be charged for a good or service. In this case, the price ceiling is set at $10. When the price is artificially held below the market equilibrium price, it creates a shortage. In the figure, the demand curve intersects the supply curve at a quantity of 230 units. However, at the price ceiling of $10, the quantity supplied is only 190 units. This creates a shortage of 40 units (230 - 190 = 40).

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  • 15. 
    (Table: Equilibrium Price, Quantity) Refer to the table. If the supply curve for the product shifted to the right such that 10 more units of the good are supplied at every price, what is the new equilibrium price?   - ProProfs

    1. (Table: Equilibrium Price, Quantity) Refer to the table. If the supply curve for the product shifted to the right such that 10 more units of the good are supplied at every price, what is the new equilibrium price?  

    • $12

    • $14

    • $16

    • $18

    Correct Answer
    A. $12
  • 16. 

    1. If quantity supplied equals 80 units and quantity demanded equals 85 units under a price control, then it is a:

    • Binding price ceiling.

    • Binding price floor.

    • Nonbinding price ceiling.

    • nonbinding price floor

    Correct Answer
    A. Binding price ceiling.
    Explanation
    A binding price ceiling occurs when the government sets a maximum price that is below the equilibrium price. In this case, the quantity demanded (85 units) exceeds the quantity supplied (80 units) at the controlled price. This indicates that there is a shortage in the market, as the quantity demanded exceeds the quantity supplied. Therefore, the correct answer is a binding price ceiling.

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  • 17. 

    In free markets, surpluses lead to:

    • lower prices.

    • Higher prices.

    • Stable prices.

    • Unexploited gains from trade.

    Correct Answer
    A. lower prices.
    Explanation
    In free markets, surpluses occur when the quantity supplied exceeds the quantity demanded. This leads to an excess supply of goods or services, which puts pressure on sellers to lower their prices in order to attract more buyers. As a result, lower prices are the outcome of surpluses in free markets.

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  • 18. 
    (Table: Equilibrium Price, Quantity) Refer to the table. If the supply curve for the product shifted to the right such that 20 more units of the good are supplied at every price, what is the new equilibrium price?   - ProProfs

    1. (Table: Equilibrium Price, Quantity) Refer to the table. If the supply curve for the product shifted to the right such that 20 more units of the good are supplied at every price, what is the new equilibrium price?  

    • $10

    • $12

    • $14

    • $16

    Correct Answer
    A. $10
    Explanation
    If the supply curve shifts to the right, it means that there is an increase in the quantity supplied at every price. In this case, the supply curve has shifted by 20 units. As a result, there is an excess supply in the market, which puts downward pressure on the price. The new equilibrium price will be lower than the original price. Therefore, the new equilibrium price is $10.

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  • 19. 

    1. If quantity supplied equals 85 units and quantity demanded equals 80 units under a price control, then it is a:

    • Binding price ceiling.

    • Binding price floor.

    • Nonbinding price ceiling.

    • Nonbinding price floor.

    Correct Answer
    A. Binding price floor.
    Explanation
    If the quantity supplied equals 85 units and the quantity demanded equals 80 units under a price control, it means that the price control has set a minimum price that is higher than the equilibrium price. This creates a surplus of goods, where the quantity supplied exceeds the quantity demanded. Therefore, it is a binding price floor.

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  • 20. 

    1. When a tax is imposed on consumers the demand curve will:

    • Shift downward by the amount of the tax.

    • Shift upward by the amount of the tax.

    • Shift downward by less than the amount of the tax.

    • Not shift since sellers collect per-unit taxes.

    Correct Answer
    A. Shift downward by the amount of the tax.
    Explanation
    When a tax is imposed on consumers, it increases the price of the product for consumers. This increase in price leads to a decrease in quantity demanded, causing the demand curve to shift downward. The shift is equal to the amount of the tax because the tax is passed on to consumers in the form of higher prices, reducing their willingness and ability to purchase the product. Therefore, the correct answer is that the demand curve will shift downward by the amount of the tax.

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  • 21. 
    (Figure: Price Controls) Refer to the figure. Which price control would cause a shortage of 20 units of the good? - ProProfs

    (Figure: Price Controls) Refer to the figure. Which price control would cause a shortage of 20 units of the good?

    • A price ceiling of $10

    • A price floor of $10

    • A price ceiling of $6

    • A price floor of $6

    Correct Answer
    A. A price ceiling of $6
    Explanation
    A price ceiling of $6 would cause a shortage of 20 units of the good because it is below the equilibrium price. When the price ceiling is set below the equilibrium price, it creates excess demand as consumers are willing to buy more at the lower price. However, producers are not willing to supply as much at the lower price, leading to a shortage of the good. In this case, the shortage is specifically stated as 20 units.

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  • 22. 
    (Figure: Price Ceiling) Refer to the figure. If a price ceiling were set at $12, there would be a:  - ProProfs

      1. (Figure: Price Ceiling) Refer to the figure. If a price ceiling were set at $12, there would
      be a: 

    • Shortage of 50 units.

    • Surplus of 40 units.

    • shortage of 0 units.

    • surplus of 20 units.

    Correct Answer
    A. shortage of 0 units.
    Explanation
    A price ceiling is a maximum price that can be charged for a good or service. In this case, if the price ceiling is set at $12, it means that the price cannot exceed $12. Looking at the figure, we can see that the quantity demanded at a price of $12 is equal to the quantity supplied. Therefore, there would be no shortage or surplus of units.

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  • 23. 
    (Figure: Market Equilibrium) Refer to the figure. At a price of $1, the market is characterized by a(n): - ProProfs

    (Figure: Market Equilibrium) Refer to the figure. At a price of $1, the market is characterized by a(n):

    • Excess supply of 2 units.

    • Excess demand of 4 units.

    • surplus of 4 units.

    • Shortage of 6 units.

    Correct Answer
    A. Excess demand of 4 units.
    Explanation
    In the given figure, the intersection of the demand curve and the supply curve occurs at a price of $1. At this price, the quantity demanded exceeds the quantity supplied, resulting in excess demand. The excess demand is calculated as the difference between the quantity demanded and the quantity supplied, which is 4 units in this case. Therefore, the correct answer is excess demand of 4 units.

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  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 18, 2016
    Quiz Created by
    Sultan.h.g
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