At the market equilibrium a quantity exceeds price b

128. At the market equilibrium
a. quantity exceeds price
b. excess demand equals excess
supply (and both are zero)
c. price and quantity are equal
d. each seller produces at full capacity
e. everyone who is represented along
the demand curve buys the good
ANS: B PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Analytic STA: DISC: Supply and demand
TOP: Putting Supply and Demand Together KEY: Bloom's:
Comprehension
129. Excess demand occurs when
Figure 3-10

Price
Per Pair
Quantity
Demanded
Quantity
Supplied
$ 2 18 3
$ 4 14 4
$ 6 10 5
$ 8 6 6
$10 2 8
130. In supply and demand schedules in Figure 3-10 , the equilibrium price of a pair
of socks is
131. In the supply and demand schedules in Figure 3-10 , the equilibrium quantity of
socks is
132. In the supply and demand for socks schedules in Figure 3-10 , a price of $4 per
pair results in
a. equilibrium
b. excess supply of 10 pairs
c. excess demand of 5 pairs
d. excess demand of 13 pairs
e. excess demand of 10 pairs
ANS: E PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Analytic STA: DISC: Supply and demand
TOP: Putting Supply and Demand Together KEY: Bloom's:
Application
133. In the supply and demand for socks schedules in Figure 3-10 , a price of $10 per
pair results in

134. If the price of film increases, the demand for film processing would decrease;
moreover, the equilibrium price and quantity of film processing should also
decrease.
135. If prices are free to rise and fall, and supply and demand cross at a positive price,
quantity combination, neither excess demand nor excess supply can persist in a
market.