Question

question 17
1 pts
which of the following is the correct way to describe equilibrium in a market?
at equilibrium, demand equals supply.
at equilibrium, market forces no longer apply.
at equilibrium, scarcity is eliminated.
at equilibrium, quantity demanded equals quantity supplied.

question 18
1 pts
at a products equilibrium price
the products demand curve is the same as the products supply curve.
the quantity of the product demanded is less than the quantity of the product supplied.
the quantity of the product demanded is greater than the quantity of the product supplied.
the products demand curve crosses the products supply curve.

Explanation:

• Question 17:
• In a market, equilibrium occurs when the quantity demanded by consumers is exactly equal to the quantity supplied by producers.
• Demand (a curve) and supply (a curve) being equal is an incorrect description as they are different concepts (curves representing relationships).
• Market forces (like supply and demand) always apply in a market - equilibrium is just a state where they balance.
• Scarcity is a fundamental economic problem (limited resources and unlimited wants) and is not eliminated at equilibrium.
• Question 18:
• The equilibrium price is determined at the intersection point of the demand curve and the supply curve.
• The demand curve and supply curve are different (one shows quantity demanded at various prices, the other quantity supplied).
• If quantity demanded is less than quantity supplied, there is a surplus and the price will tend to fall.
• If quantity demanded is greater than quantity supplied, there is a shortage and the price will tend to rise.

Answer:

Question 17: At equilibrium, quantity demanded equals quantity supplied.
Question 18: the product’s demand curve crosses the product’s supply curve.