Reffonomics Video – Surplus and Shortages

Reffonomics Video --Surplus and Shortages

After watching the video, scroll down to take the three multiple choice questions.

1. If the price goes ABOVE the equilibrium P, then what will happen to each of the following in the short run?

A) Qs (up) ; Qd (down) ; Shortage
B) Qs (down) ; Qd (down) ; Surplus
C) Qs (up) ; Qd (down) ; Surplus
D) Qs (down) ; Qd (up) ; Shortage
E) Qs (up) ; Qd (up) ; Surplus

2. If the price goes BELOW the equilibrium P, that what will happen to each of the following in the short run?

A) Qs (up) ; Qd (down) ; Shortage
B) Qs (down) ; Qd (down) ; Surplus
C) Qs (up) ; Qd (down) ; Surplus
D) Qs (down) ; Qd (up) ; Shortage
E) Qs (up) ; Qd (up) ; Surplus

3. If the price is ABOVE the equilibrium P, indicate what happens to Qs, Qd, and P as the market adjusts to the NEW equilibrium price.

A) Qs (up) ; Qd (down) ; P (up)
B) Qs (down) ; Qd (down) ; P (down)
C) Qs (up) ; Qd (down) ; P (up)
D) Qs (down) ; Qd (up) ; P (down)
E) Qs (up) ; Qd (up) ; P (down)