Market equilibrium exists when _________ at the prevailing price?

Related Mcqs:

1. The equilibrium price clears the market it is the price at which _________________?

   A. Everything is sold
   B. Buyers spend all their money
   C. Quantity demanded equal quality supplied
   D. Excess demanded equals quantity
   E. C and D

2. Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today ?

   A. The impact on both price and quantity is ambiguous
   B. Price will decrease, quantity is ambiguous.
   C. price will increase, quantity will decrease
   D. price will increase, quantity is ambiguous.
   E. Price will increase, quantity will increase

3. If the market price is below the equilibrium price ?

   A. quantity demanded will be greater than quantity supplied
   B. quantity demanded will be less than quantity supplied
   C. demand will be less than supply.
   D. quantity demanded will equal quantity supplied .

4. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

5. If a producer has market power (can influence the price of the product in the market) then free market solutions ?

   A. are equitable.
   B. are efficient
   C. maximize consumer surplus
   D. are inefficient

6. If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?

   A. The higher price in market A
   B. The higher price in market B
   C. The same Price in both markets
   D. Cannot tell which price will be higher

7. Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals _________ quantity equals _________ and profits total _________?

   A. $100, 2 million barrels per day $60 million
   B. $80, 4 million barrels per day $70 million
   C. $60, 6 million barrels per day, $20 million
   D. $40, 8 million barrels per day, $0 million

8. The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?

   A. future value
   B. fair value
   C. present value
   D. compound value
   E. beginning value

9. JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?

   A. Rs 43,456,838
   B. Rs 53,406,002
   C. Rs 34,538,902
   D. Rs 39,604,682

10. An increase in the prevailing interest rate ?

    A. increases the present value of future returns from investment and increases investment
    B. decreases the present value of future return from investment and decreases investment
    C. decreases the present value of future returns from investment and increase investment
    D. increases the present value of future returns from investment and decreases investment