Question

pregunta 49 (1 punto)
if the price of an item is below equilibrium, there is a _ and the price should _.
a shortage; decrease
b surplus; decrease
c shortage; increase
d surplus; increase

pregunta 50 (2 puntos)
the place where supply and demand curves meet (where supply=demand) is called the ___.
a competitive price
b break even point
c quantity demanded
d equilibrium point

Explanation:

• Pregunta 49: When price is below equilibrium, quantity demanded exceeds quantity supplied, creating a shortage. Market forces push the price upward to reach equilibrium.
• Pregunta 50: The intersection of supply and demand curves, where quantity supplied equals quantity demanded, is defined as the equilibrium point.

Answer:

Pregunta 49: c. shortage; increase
Pregunta 50: d. equilibrium point