Economics Ch. 6 Guided Notes

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

legal

A price AT or ABOVE a price floor is ___.

illegal

A price BELOW a price floor is ____.

balance

At equilibrium price, supply and demand are in __.

quantity demanded

At equilibrium quantity, the amount of a good or service supplied by producers balances the ___ by consumers.

negotiated

In a competitive market, prices are ___.

governments

On occasion, ____ intervene in the market in an attempt to influence prices.

equilibrium price

PRICE marked by the equilibrium point

producers

Price floors are meant to push prices up, ensuring that ____ receive a benefit for providing a good or service.

equilibrium quantity

QUANTITY marked by the equilibrium point on the graph

consumers and producers

The interaction between ___ and ____ automatically pushes the market price (what a willing consumer pays to a willing producer) of a good or service toward the equilibrium price

equilibrium price

The interaction between consumers and producers automatically pushes the market price (what a willing consumer pays to a willing producer) of a good or service toward the ______ ________.

consumers and producers

The reason the government uses price controls is because the government is subject to persuasion by ____ and ______.

low

To economists, excess demand is a sign that a price of a good or service is set too ___.

price ceiling

When a government wants to keep prices from going too high, it sets a ____ _____.

excess supply

While price floors may benefit some people, the larger effect of a price floor is ____ ____.

price floor

a minimum price consumers are required to pay for a good or service

minimum wage

government-imposed legal floor on the hourly wage rate, which is the market pays for labor (price floor)

quantity supplied

is equal to quantity demanded at market equilibrium

quantity demanded

is equal to quantity supplied at market equilibrium

price controls

limits on how high or low certain prices may be set by the government

price ceiling

maximum price consumers are required to pay for a good or service

surplus

occurs when there are too few consumers willing to pay producers what they are asking for their goods

shortage

occurs when there are too many consumers chasing too few goods

market equilibrium

point where quantity of a good or service that consumers are willing and able to buy equals the quantity that producers are willing and able to sell

market equilibrium

point where the interaction of demand and supply drives prices to

illegal

price AT or ABOVE a price ceiling is ___.

legal

price BELOW a price ceiling is ___.

excess demand

quantity demanded at a specific price exceeds quantity supplied

excess supply

situation in which the quantity supplied at a specific price exceeds the quantity demanded

market price

what a willing consumer pays to a willing producer

shortage

what consumers experience an excess demand as

surplus

what producers experience with excess supply

price floor

when a government wants to keep prices low, it sets this

supply = demand

when consumers and producers both come away satisfied


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