Understanding Equilibrium Price in Economics

Multiple Choice Questions

1. What is the equilibrium price?

   A. The price at which supply exceeds demand

   B. The price at which quantity demanded equals quantity supplied

   C. The price set by the government

   D. The price that results in surplus

2. Which of the following factors can shift the demand curve?

   A. Changes in consumer income

   B. Changes in the number of suppliers

   C. Changes in production technology

   D. None of the above

3. If the price of a product is above the equilibrium price, what is likely to happen?

   A. Shortage occurs

   B. Surplus occurs

   C. No changes occur

   D. Demand increases

4. In a competitive market, how is the equilibrium quantity determined?

   A. By government regulation

   B. By the intersection of supply and demand curves

   C. By producers alone

   D. By consumer preferences alone

5. Which statement best describes what happens to the equilibrium price if demand increases?

   A. The equilibrium price will decrease

   B. The equilibrium price will stay the same

   C. The equilibrium price will increase

   D. The equilibrium quantity will decrease

Fill-in-the-Blank Questions

1. The point at which the supply and demand curves intersect is known as the _.

2. If there is excess demand, there is a _ in the market.

3. When a product is sold at below the equilibrium price, a _ is created.

4. The forces of supply and demand naturally reach equilibrium over time through the process of _.

5. Equilibrium price is affected by changes in _.

Open-Ended Question

1. Explain how external factors such as consumer preferences and resource availability can affect equilibrium price. Provide real-life examples.

Answer Key

Multiple Choice Questions

1. B

2. A

3. B

4. B

5. C

Fill-in-the-Blank Questions

1. equilibrium price

2. shortage

3. surplus

4. market adjustment

5. demand and supply

Open-Ended Question

1. Students should explain that consumer preferences can shift demand, while resource availability can affect supply. An example could be a new trend increasing the demand for a specific type of smartphone, leading to a higher equilibrium price, or a drought reducing the supply of wheat, increasing its price.

Notes

    This worksheet aims to deepen understanding of the equilibrium price in economics, aligning with 9th-grade economics educational standards. Students will engage with multiple choice, fill-in-the-blank, and open-ended questions to encourage a comprehensive understanding of the topic.