Macroeconomics
What role does the law of supply and demand play in correcting a shortage?
If the market price is set at \$4, which is below the equilibrium price, how can you identify the shortage on a graph?
What is a shortage in a market?
What is the effect of a price decrease on quantity demanded and quantity supplied?
What is the definition of equilibrium in the context of supply and demand?
On a supply and demand graph, how can you identify a surplus?
If the equilibrium price of a product is \$10 and the equilibrium quantity is 50 units, what does this mean on a supply and demand graph?
What are the implications of a surplus in a market?
What happens in a market when the price is set above the equilibrium price?
What happens when the price is set below the equilibrium price?
