Question

12. A market is said to be in equilibrium when: A Quantity demanded equals quantity supplied B. Production costs equal revenues from sale of the output C. The number of sellers equals the number of buyers D. People's needs are fully met 13. At the equilibrium prices: A. There are shortages but no surpluses B. There are surpluses but no shortages C. The economic problem of scarcity is no longer relevant D. There are no shortages or surpluses 14. An increase in the number of consumers in the Valley during the tourist season combined with frost that has damaged the citrus production leads to: L A lower equilibrium price for citrus fruits II. A higher equilibrium price for citrus fruits TIL A lower equilibrium quantity of citrus fruits IV. A higher equilibrium quantity of citrus fruits A. Definitely both I and IV B. Definitely both II and III C. Only II D. Only I 15. A market shortage is: A. Quantity demanded exceeds the quantity supplied at a given price B. A situation of excess demand C. Market price being lower than equilibrium price and people can't be buying all of the goods they are willing and able to buy D. All of the above 16. When effective price ceilings are set in a market: A. Quantity demanded will be less than the equilibrium quantity, and price will be less than the equilibrium price B. Quantity demanded will be less than the equilibrium quantity, and price will be greater that the equilibrium price c. Quantity demanded will be greater than the equilibrium quantity, and price will be less than the equilibrium price D. Quantity demanded will be greater than the equilibrium quantity, and price will be greater than the equilibrium price 17. Minimum wage laws: A. Tend to cause some unemployment of unskilled labor B. Are examples of price floors C. Lead to higher wages for the employed workers D. All of the above 18. A sudden decline in people's desire to eat eggs and egg products would lead to: A. A surplus of eggs at the current price and a decrease in price of eggs B. A shortage of eggs at the current price and an increase in price of eggs C. No change in price of eggs since it still costs just as much to produce eggs D. Whether there will be a shortage or a surplus depends on the reaction of the hens to people's taste 19. Suppose that "all" workers receive a wage reduction. What would be the impact on the market for cars? A. We are unable to tell without more information, B. The supply of autos would decrease. C. The demand for autos would increase. D. The supply of nutos would increase and demand for cars would fall. 20. Which of the following is true for inferior goods? B. They are of low quality. A. The law of demand does not hold. D. All of the above. C. The demand for them falls as consumer income rises.

Answer 1

12) Answer: (A) Quantity demanded equals quantity supplied.

Market equilibrium occurs when market supply equals market demand. The equilibrium price of a good or service, therefore, is its price when the supply of it equals the demand for it.

13) Answer: (D) There are no shortages or surpluses

Since supply and demand are equal, thus neither there is shortage nor surplus.

Please post the other questions separately. Thanks and good luck:)