Question

Please help with these questions,

1. The price where quantity demanded is equal to quantity supplied is known as

Use letters in alphabetical order to select options

A

equilibrium rate.

B

equilibrium price.

C

equilibrium quantity.

D

equilibrium level.

2. Fill in the blank with the correct answer by typing in the box. A _______ shows the relationship between price and quantity demanded on a graph.

3. Select whether the statement is true or false.

The point where the supply curve and the demand curve cross is called the equilibrium.

Use letters in alphabetical order to select options

A

true

B

false

4. Fill in the blank with the correct answer by typing in the box. One common mistake in applying the demand and supply framework is to confuse the shift of a demand or a supply curve with _______________ along a demand or supply curve to establish equilibrium price and quantity.

5. Select whether the statement is true or false.

One typical way that economists define efficiency is when it is possible to improve the situation of one party without imposing a cost on another.

Use letters in alphabetical order to select options

A

true

B

false

Answer 1

1. The price where quantity demanded equals quantity supplied is called equilibrium price.

2. Demand Curve.

Demand Curve is the curve which shows varoius combination of price and quantity demanded. Because of Law of Demand ( which states that keeping other factors constant , relationship between price and quantity demanded is negative) the demand curve is inverse.

3. True

See Figure above . The point where demand curve and supply curve intersect/cross is called equilibrium.

4. Movement Along

To not confuse between them We must always remember that demand and supply curve shifts when factor other than price changes and movement along these curves when price changes.

All the best :))