Practice - Equilibrium, Excess Demand, Excess Supply
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Practice Questions
Test your understanding with targeted questions
Define equilibrium in a market.
💡 Hint: Think about the balance point where buyers and sellers are satisfied.
What is excess demand?
💡 Hint: Consider a scenario where many people want to buy a limited product.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is equilibrium in a market?
💡 Hint: Think about how buyers and sellers interact.
True or False: Excess demand leads to an increase in market prices.
💡 Hint: Recall how prices respond when demand is high.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Assume a sudden increase in income for consumers leads to a higher demand for a normal good. How would this affect the equilibrium price and quantity? Include a graph.
💡 Hint: Consider the demand shifts process on your graph.
Analyze a scenario where the number of firms in a market increases significantly. Discuss the long-term effects on equilibrium price in a perfectly competitive setting.
💡 Hint: Reflect on how competition amongst firms typically influences pricing.
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