What is the equilibrium price also known as?

Market clearing price

True or False: Government intervention in price setting does not consider production costs.

False. 

Government intervention considers production costs, business risks, and the nature of the product.

Riddle: 

I am the point where quantity demanded equals quantity supplied, ensuring no excess. What am I?

Equilibrium price

The equilibrium price is achieved when ______ and ______ are in balance.

Demand; supply

Which factor can shift demand?

A) Technology

B) Preferences

C) Govt. policies

D) All of the above

D) All of the above

When there is excess supply, what typically happens to the market price?

The market price decreases.

True or False:
An increase in supply with constant demand increases equilibrium price.

False.
It usually lowers the equilibrium price.

What happens to the equilibrium price when demand decreases?

The equilibrium price typically falls.

Riddle: 

I shift right when consumer income rises, causing prices to change. What am I?

Demand curve

The initial analysis of market equilibrium is based on the ______ assumption.

Ceteris paribus

In a situation where demand increases more than supply, the equilibrium price will ______.

Rise

Which of the following statements is true about simultaneous shifts in demand and supply?

The effects on equilibrium price and quantity depend on the relative magnitudes of the shifts.

Fill in the blank: 

The price mechanism helps to eliminate ______ and ______ in the market.

Shortages; surpluses

True or False: 

A decrease in supply with constant demand will likely lead to a rise in equilibrium quantity.

False.
Less supply with steady demand reduces equilibrium quantity.

What occurs when the quantity demanded exceeds the quantity supplied?

A shortage

If demand decreases and supply increases, what happens to price?

Price Falls

When the supply curve shifts left due to outdated technology, the equilibrium price will ______.

Rise

Fill in the blank: 

The study of the demand and supply model is crucial because it helps explain how ______ function.

Markets

Riddle: 

I am the force that moves prices down when there’s too much supply. What am I?

Price mechanism

What will happen to equilibrium quantity if both demand and supply increase equally?

Equilibrium quantity increases, but price remains the same.