Question

What do we call a scenario where quantity demanded exceeds quantity supplied?          

1. Surplus                     
2. Shortage                   
3. Excess supply          
4. Infinite demand

When both the demand curve and the supply curve shift to the left at the same time, what happens to equilibrium price and quantity in the market?             

1. Both decrease
2. Price increases and quantity decreases                       
3. Price stays the same and quantity decreases
4. Price change cannot be determined, but quantity decreases

How do you calculate a shortage or surplus?

1. Difference between quantity demanded and equilibrium quantity    
2. Difference between quantity demanded and quantity supplied         
3. Difference between quantity supplied and equilibrium quantity               
4. Difference between market price and equilibrium price

According to the Law of Supply, when price goes up

1. Supply goes up        
2. Supply goes down                 
3. Quantity supplied goes up
4. Quantity supplied goes down

Answer 1

- B. Shortage

- D. Price change cannot be determined, but quantity decreases.

- B. Difference between quantity demanded and quantity supplied.

- C. Quantity supplied goes up