12. When are equilibrium prices achieved?
(1 point)
Responses
when supply equals demand
when supply equals demand
when supply is greater than demand
when supply is greater than demand
when demand is greater than supply
when demand is greater than supply
when prices go as high as possible
When supply equals demand.
Which of these BEST represents a capital investment for a company?
-buying new equipment
A computer programmer, bank teller, and construction worker are all examples of
-human resources
Getting the goods and services that you want by offering a different good or service (not money) as payment is called _____________________________.
-Bartering
Maria goes on a shopping trip to get ready for her vacation. She loads her cart with a new purse for $12.00, a sun hat for $4.00, magazines for $6.00, and a beach towel for $4.00. When she gets to the register, she realizes she only has $20.00 in her pocket. Use the passage to answer the question. If Maria decides to purchase the sun hat, towel, and bathing suit, what is the opportunity cost of her purchase?
-The magazines
According to the law of demand, what role do low prices serve for buyers?
-Reward
How does scarcity affect customers?
- Limited money and resources forces consumers to make choices.
Which of the following goods or services is an import to the United States?
- Oil bought by the United States from the Middle East.
Which of the following is a characteristic of a Command Economy?
- Government control.
Which of these is an example of a monetary incentive?
- Earning an allowance for doing chores.
Which situation is more likely to occur in a Market Economy than a Command Economy?
-A citizen designs a new game and opens a store to sell it.
Trade barriers are designed to protect producers in the country from being put out of business by foreign producers with lower prices & to prevent trade deficits from happening.
- True.
When are equilibrium prices achieved?
- When supply equals demand.
Match the resources with the kind of resource they belong to.
- Natural: coal, Human: chef, Capital: computer.
A surplus means that a business made too much and may waste money on resources making products that will not get used or be thrown out.
- Surplus.
What does a relative price compare?
- The price of one good or service compared to another similar one.
A popular cell phone manufacturer begins selling a new phone with many unique features and is improved. Lots of people want to buy the new phone. The old phone cost $149.00. What is the most likely price of the new phone?
- $199.
A substitute is an equivalent or comparable good or service, which can drop demand for the original good or service, lowering prices over time.
- Substitute.
The law of demand describes the relationship between prices and demand.
- Demand.
If many buyers want a good or service that is in low supply, the price will most likely increase.
- Increase.
Price competition in the market, including price wars between competitors, typically benefits the consumer (buyer).
- Consumer (buyer).
True.
Equilibrium prices are achieved when supply equals demand.
Equilibrium prices are achieved when supply equals demand. To understand why, we need to understand the concepts of supply and demand.
Supply refers to the quantity of a good or service that producers are willing to sell at a given price. Generally, suppliers are willing to supply more as prices increase and less as prices decrease. This relationship is called the law of supply.
Demand, on the other hand, refers to the quantity of a good or service that consumers are willing to buy at a given price. Consumers typically demand more as prices decrease and less as prices increase. This relationship is called the law of demand.
The equilibrium price is determined at the point where the quantity of a good or service supplied equals the quantity demanded in the market. This means that at the equilibrium price, suppliers are willing to sell exactly as much as consumers are willing to buy, creating a balance between supply and demand.
If the supply is greater than the demand, there will be an excess supply, also known as a surplus. In this case, suppliers will have unsold inventory, which may lead them to lower the price to encourage more purchases until equilibrium is reached.
Conversely, if the demand is greater than the supply, there will be excess demand, also known as a shortage. In this case, consumers may compete with each other, driving the price up until equilibrium is reached.
So, the correct answer is when supply equals demand.