Econ unit 4 quiz 1

Please refer to the graph to answer the question. Without price controls, this market will adjust until it reaches a price of _____ per pair of shoes. This is the price at which producers supply the same amount that consumers demand.

$35

Not enough demand by consumers will move the market _____ the demand curve.

down

In a market without price controls, producers can charge the _____, so that consumers will buy all of their products.

equilibrium price

Suppose you produce T-shirts, and the equilibrium price for a T-shirt is $5. You haven't really done much research, so you decide to charge a price of $3 per shirt. At this price, there will be an _____ of T-shirts.

excess demand

Please refer to the graph to answer this question. At $50 per pair of shoes, consumers demand _____ than you supply.

fewer shoes

Rent control sets the _____ amount of rent that a property owner can charge.

highest

Suppose you produce T-shirts, and you are charging less than the equilibrium price. By buying all of your products and demanding more, consumers are pressuring you to _____ your supply of T-shirts.

increase

Phil works in a _____ job and earns minimum wage.

low-paying

Supporters of rent control say that it _____ the price of renting an apartment.

lowers

Price controls that exist in the economy include price floors such as _____ and price ceilings such as _____.

minimum wage, rent control

Supporters of minimum wage say that it provides _____ for people with low-paying jobs.

more money

You earn money from working part-time at the local grocery store. You also receive a weekly allowance from your parents. Both your job earnings and your allowance are part of your _____.

personal income

Suppose you are a T-shirt producer in a market without price controls. You are charging a price that is below the equilibrium price for T-shirts. Market pressures will eventually _____ the price of your T-shirts

raise

Opponents of minimum wage say that it causes a job _____, which can increase unemployment.

shortage

Price controls can cause _____ or _____.

shortages, surpluses

Please refer to the graph to answer the question. When there was an excess supply of shoes, there was also a(n) _____ of shoes. In a market without price controls, the market will adjust until it reaches the ___

surplus, equilibrium price

Minimum wage is one way for the government to help people with low-paying jobs to afford basic goods. Another way to achieve this goal is with _____.

the Earned Income Tax Credit

Select the items that describe what happens at the equilibrium price.

Producers supply the exact goods that consumers buy. There are many shortages and surpluses. Producers use their resources efficiently.

_____ are another way that the government helps people to afford a place to live.

Rent subsidies

Suppose you are a T-shirt producer in a market without price controls. When you sell T-shirts at the equilibrium price, you will not _____ any resources because you will supply what consumers demand.

waste