Supply, Demand and EquilibriumOnline version Test your knowledge of supply, demand, and equilibrium in this educational game! by sarah ayyad 1 A shortage occurs when the quantity supplied exceeds the quantity demanded. Yes No 2 Equilibrium occurs when the quantity supplied equals the quantity demanded. Yes No 3 The law of supply states that as the price of a good increases, the quantity supplied decreases. Yes No 4 The law of supply states that as the price of a good increases, the quantity supplied also increases. Yes No 5 The equilibrium price is always the highest price in the market. Yes No 6 The demand curve slopes upward. Yes No 7 The demand curve slopes downward. Yes No 8 A shortage occurs when the quantity demanded exceeds the quantity supplied. Yes No 9 An increase in demand leads to lower prices. Yes No 10 An increase in demand leads to higher prices. Yes No 11 The law of demand states that as the price of a good increases, the quantity demanded also increases. Yes No 12 A decrease in supply leads to higher prices. Yes No 13 The law of demand states that as the price of a good increases, the quantity demanded decreases. Yes No 14 The equilibrium price is also known as the market-clearing price. Yes No 15 Supply and demand have no impact on prices. Yes No 16 A decrease in supply leads to lower prices. Yes No 17 Supply and demand determine the price of goods. Yes No 18 Equilibrium only occurs in perfectly competitive markets. Yes No
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