3 Written Questions

1. The price that clears the market, at which there is no excess demand or excess supply
2. Simple. Yes.
3. Shows how much firms of producers plan to supply at different prices.

3 Multiple Choice Questions

1. Goods that are in joint demand (they go together) such as cars and petrol.
   1. Complementary Goods
   2. Substitute Goods
   3. Supply Curve
   4. Demand Curve
2. Goods that are in competing demand. E.g. when the price of tennis shoes is high, more people will substitute in trainers.
   1. Complementary Goods
   2. Disequilibrium
   3. Substitute Goods
   4. Supply Curve
3. This is when the market has either excess supply or excess demand.
   1. Equilibrium Price
   2. Disequilibrium
   3. Demand Curve
   4. Market

2 True/False Questions

1. Market → A market is a meeting place of buyers and sellers for the purpose of exchanging goods or services.

   True        False

2. Demand Curve → Shows the quantities of a good that households or consumers plan to purchase at different prices.

   True        False