............................................................................................................ Suppose the current price in a market is below the equilibrium price. At the current price in themarketOa. a shortage exists.SHORTAGEOb. a surplus exists.$12Oc. equilibrium exists.Od. disequilibrium exists in the market.10CSOe. a and d00 The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area ofconsumers' surplus isOa. the area above the supply curve, out to 100 units, and below $10.P.SAHORTAGEOb. the area below the demand curve, out to 100 units, and above $10.12Oc. the area below the demand curve, out to the point at which the demand curve touches the horizontal axis$12 Qg>QdSURPLUS(quantity axis), and above $10.10CPOd. the area below the supply curve, out to 100 units, and above S10.Oe, none of the aboveOVQs=20Q4=30100

Equilibrium in the market occurs when at a particular price, quantity demanded equals quantity…

Suppose the current price in a market is below the equilibrium price. At the current price in the market Oa. a shortage exists. Ob. a surplus exists. Oc. equilibrium exists. Od. disequilibrium exists in the market. Oe. a and d

Suppose the current price in a market is below the equilibrium price. At the current price in the market Oa. a shortage exists. Ob. a surplus exists. Oc. equilibrium exists. Od. disequilibrium exists in the market. Oe. a and d

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

............................................................................................................

Suppose the current price in a market is below the equilibrium price. At the current price in the
market
Oa. a shortage exists.
SHORTAGE
Ob. a surplus exists.
$12
Oc. equilibrium exists.
Od. disequilibrium exists in the market.
10
CS
Oe. a and d
00

The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area of
consumers' surplus is
Oa. the area above the supply curve, out to 100 units, and below $10.
P.
SAHORTAGE
Ob. the area below the demand curve, out to 100 units, and above $10.
12
Oc. the area below the demand curve, out to the point at which the demand curve touches the horizontal axis
$12 Qg>Qd
SURPLUS
(quantity axis), and above $10.
10
CP
Od. the area below the supply curve, out to 100 units, and above S10.
Oe, none of the above
OV
Qs=20
Q4=30
100

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