Question 1
2 / 2 pts
When the price is ___ the equilibrium price, we would expect there to be a ___, causing the market to
put ___ pressure on the price until it went back to the equilibrium price.
above; surplus; upward
above; shortage; downward
below; surplus; upward
below; shortage; downward
above; surplus; downward
Question 2
2 / 2 pts
Which of the following scenarios best describes the change in the equilibrium shown in the
accompanying graph?
firms entering the market
firms leaving the market
buyers entering the market
buyers leaving the market
an input cost decreasing
Question 3
2 / 2 pts
If the price of rubber were to increase by 20% over the fiscal year and if all else were held constant,
