ECON 2301 (Ch.5 Quiz)

# ECON 2301 (Ch.5 Quiz) - 1 Are markets always in equilibrium...

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1. Are markets always in equilibrium? No, but if there is no outside interference, they tend to move toward equilibrium. 2. Which of the following is the correct way to describe equilibrium in a market? At equilibrium, quantity demanded equals quantity supplied. 3. What is the equilibrium price in the exchange? \$7 Price per large pepperoni pizza Quantity demanded Quantity Supplied \$8 3,000 units 4,500 units \$ 7 4,000 units 4,000 units \$6 5,000 units 3,500 units 4. At \$0.40, there is a Shortage of 7,500,000 downloads. Price per music downloads Quantity demanded Quantity Supplied \$0.40 9,000,000 units 1,500,000 units 5. When there is an excess quantity demanded of a product at the current price, then the price will tend to rise. 6. When there is an excess quantity supplied of a product at the current price, then the price will tend to fall. 7. The equilibrium price for butter is \$3 8. If the current price of butter equals \$5, you would expect to find that the market is not in equilibrium and the quantity supplied is greater than the quantity supplied.

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## This note was uploaded on 10/01/2011 for the course ECON 2301 taught by Professor Butler during the Spring '08 term at Blinn College.

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ECON 2301 (Ch.5 Quiz) - 1 Are markets always in equilibrium...

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