True or false: market equilibrium

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Equilibrium is where the plans of buyers and sellers are compatible.

2. Statement is true

   Yes

   Statement

   The market demand curve shows how much buyers want in total.

3. Statement is true

   No

   Statement

   Excess demand tends to push the price down.

4. Statement is true

   Yes

   Statement

   Price is determined by demand and supply together.

Instructions

Decide whether each statement about price is true or false.

Explanation