81) The supply and demand model applies when three of the following four conditions are met. Which condition is not required?

There must be many buyers

There must be many sellers

The buyers and sellers must trade an identical item

The item traded must be a product

Answer is:

The item traded must be a product

If there is excess demand, the price will rise

If there is excess supply, the price will fall

If there is no excess demand or excess supply, the market will be in equilibrium

A market which is out of equilibrium will always move rapidly to the equilibrium

Answer is:

There will be a fall in quantity supplied and a rise in quantity demanded

There will be a fall in quantity supplied and a rise in demand

There will be a fall in supply and a rise in quantity demanded

There will be a fall in supply and a rise in demand

Answer is:

An excess supply

A fall in price

A fall in supply

A fall in the equilibrium level of expenditure

Answer is:

An excess demand at the initial equilibrium price

An excess demand at the new equilibrium price

An excess supply at the initial equilibrium price

An excess supply at the new equilibrium price

Answer is: