Multiple choice

Question 1 

When the market price is higher than the equilibrium price, there is:

A. a surplus.

B. a shortage.

C. both a shortage and a surplus.

D. neither a shortage nor a surplus.

Question 2 

A decrease in demand means that quantity demanded falls:

A. at least one price.

B. at a few prices.

C. at most prices.

D. at all prices.

Question 3 

If the market price is below equilibrium price, quantity demanded:

A. is less than quantity supplied.

B. is equal to quantity supplied.

C. is greater than quantity supplied.

D. remains the same.

Question 4 

At equilibrium, quantity demanded __________ equals quantity supplied.

A. always

B. usually

C. sometimes

D. never