Lesson 1.2.6
1.2.6 Price determination Quiz: Pearson Edexcel Economics, Unit 1
20 questions
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Lesson 1.2.6, Price determination: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 1: Theme 1: Introduction to markets and market failure, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
At what price does quantity demanded exactly equal quantity supplied in a market?
- Shadow price
- Minimum price
- Equilibrium price
- Maximum price
-
What situation occurs in a market when quantity demanded exceeds quantity supplied?
- Consumer surplus
- Excess supply
- Excess demand
- Market equilibrium
-
What situation occurs in a market when quantity supplied exceeds quantity demanded?
- Producer surplus
- Excess supply
- Market equilibrium
- Excess demand
-
What market force operates when price is set above the equilibrium level?
- Upward price pressure
- Demand shift right
- Supply shift left
- Downward price pressure
-
What market force operates when price is set below the equilibrium level?
- Downward price pressure
- Supply shift right
- Upward price pressure
- Demand shift left
-
If demand for a normal good increases, what happens to equilibrium price and quantity?
- Price rises, quantity falls
- Both rise
- Price falls, quantity rises
- Both fall
-
When production costs fall, shifting supply right, how do equilibrium price and quantity change?
- Both rise
- Both fall
- Price rises, quantity falls
- Price falls, quantity rises
-
When an indirect tax shifts supply left, how do equilibrium price and quantity change?
- Both fall
- Price falls, quantity rises
- Price rises, quantity falls
- Both rise
-
Which price movement eliminates excess demand in a free market?
- Price stays constant
- Price falls
- Price fluctuates randomly
- Price rises
-
If supply increases by more than demand increases, what happens to equilibrium price?
- It rises
- It stays unchanged
- It falls
- It becomes uncertain
-
What causes a market price to move towards equilibrium?
- Consumer agreements
- Government regulation
- Market forces
- Fixed production quotas
-
At £7, quantity supplied is 80 units and quantity demanded is 40 units. What exists?
- Zero supply
- Market equilibrium
- Excess demand
- Excess supply
-
Demand increases while supply remains constant. What immediately occurs at the original price?
- Excess supply
- Price collapse
- Excess demand
- Market equilibrium
-
How does the price mechanism allocate scarce goods to buyers?
- Through queueing systems
- Through random lotteries
- Through price adjustments
- Through government rationing
-
Why might a free market equilibrium price fail to maximise social welfare?
- Perfect competition
- Excess demand
- Negative externalities
- Price flexibility
-
What happens to equilibrium price when demand decreases while supply remains constant?
- It stays constant
- It doubles
- It rises
- It falls
-
Why does a hot day increase the equilibrium price of ice cream?
- Lower production costs
- Supply shifted left
- Excess demand created
- Excess supply created
-
What triggers price adjustments in a free market economy?
- Fixed production quotas
- Government price controls
- Market disequilibrium
- Higher interest rates
-
How does the price mechanism eliminate a market shortage?
- Price decreases
- Demand shifts right
- Price increases
- Supply shifts left
-
Which event shifts the demand curve right for a normal good?
- Higher consumer incomes
- Higher production costs
- Lower substitute prices
- Higher complement prices
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