Price And Quantity Determination Under Perfect Competition - SS2 Economics Past Questions and Answers - page 1
1
In perfect competition, who determines the market price of a good or service?
View related lesson
A
Producers
B
Consumers
C
Both producers and consumers
D
No one, it is determined by market forces
2
What is the point at which the supply and demand curves intersect called?
View related lesson
A
Equilibrium price and quantity
B
Market price and quantity
Â
C
Surplus and shortage
D
Elasticity of demand
3
In perfect competition, what type of power do producers have in setting the price of a good or service?
View related lesson
A
Market power
B
Monopoly power
C
Price setting power
D
No power
4
What happens to the price of a good or service when there is a surplus in the market?
View related lesson
A
It increases
B
It decreases
C
It stays the same
D
It is impossible to predict
5
At what point do producers in perfect competition produce and sell the quantity that maximizes their profits?
View related lesson
A
Where their marginal cost equals the market price
B
Where their marginal revenue equals the market price
C
Where their average cost equals the market price
D
Where their total revenue equals the market price
7
Who determines the market price and quantity of a good or service?
View related lesson
8
The market for pizza in perfect competition is characterized by a demand curve given by Qd = 150 - 3P and a supply curve given by Qs = 30P + 10. What is the equilibrium price and quantity of pizza in this market?
View related lesson
Loading lesson…