Question

If the movie ticket price of watching a James Bond movie is equal to the equilibrium price, there will be ________ of moive tickets for the James Bond movie and the price will ________.

1)	surplus; rise.

2)	surplus; fall.

3)	shortage; fall.

4)	neither a shortage nor surplus; not change.

Answer 1

4. neither a shortage nor surplus; not change   This is the CORRECT answer.

At equilibrium price quantity supplied matches the quantity demanded. Any price above the equilibrium price indicates that the quantity supplied is greater than the demand and there is a surplus. Market price fall in this situation. When price is below the equilibrium price, there is a shortage of goods as the demand is more than the supply. Prices rise as a result

The price of the movie ticket is same as the equilibrium price. This indicates that the supply of tickets for movie is same as the demand to watch movie. There is neither surplus nor shortage.