Econ 1014 Exam 2 Study Guide

Econ 1014 Exam 2 Study Guide - Unit 2 Section 4 Equilibrium...

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Unit 2 Section 4: Equilibrium 1) If the price of the good is above the market equilibrium: a. There will be a shortage of the good and market forces will try to force the price down to equilibrium b. There will be a surplus of the good and market forces will try to force the price down to equilibrium c. There will be a shortage of the good and market equilibrium price will rise d. There will be a surplus of the good and market equilibrium price will rise e. None of the above 2) If the price of the good is below the market equilibrium: 3) When an economists says there is an excess demand in the market, she is saying: 4) “Pe” refers to: 5) Market equilibrium refers to: a. The point at which the demand curve intersects the supply curve b. The one market price that sets the quantity demanded equal to the quantity supplied c. The one point in the market where there is no longer a shortage or surplus d. All of the above e. None of the above Unit 2 Section 5: How Market Responds to a Change in Demand 1) An increase in demand causes the demand curve to shift to the and is a decrease in the demand causes the demand curve to shift to the . Unit 2 Section 6: How Market Responds to a Change in Supply 1) Which of the following would directly cause a “change in quantity supplied” of oil?
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