Economics ch. 6 test
companies engage in competitive pricing to?
lure customers away from rival producers
the result of quantity supplied being greater than quantity demanded?
product surplus
on a market demand and supply graph the horizontal axis shows?
quantity
a state of disequilibrium happens when an imbalance exists between?
quantity demanded and quantity supplied
a surplus of a particular good is often a signal for producers to?
raise prices
a system in which the government allocates goods and services using factors other than price?
rationing
when consumers demand more goods and services at every price, equilibrium price will?
rise
on a demand and supply graph, an increase in demand causes the demand curve to?
shift left to right
rationing would most likely result from?
shortages
rent control has become less common because it?
so many varieties
supply can be changed by?
something in the market
a surplus happens when?
there is more quantity's supplied than demanded
the price system helps allocate resources efficiently because prices will adjust until?
they balance
a baseball team limiting the amount charged for buying a ticket it?
a price ceiling
equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers?
are equal
the US instituted rationing during?
WW2
suppliers often reduce prices because they?
have a surplus
when there is a shortage, producers rise prices in an attempt to?
balance quantity supply and quantity demanded
occurs when producers sell goods and services at prices that best balance the twin desires of making the highest profit and luring customers away from rival producers?
competitive pricing
why did other companies find competing with Dell difficult?
customize computer, adjust price
higher prices generally?
encourage consumers to buy substitutes
a market demand and supply schedule lists the quantity supplied demand and the?
equilibrium price
the price at which the quantity of a product demanded by consumers and the quantity's supplied by producers are equal?
equilibrium price
if demand decreases and supply increases then?
equilibrium price falls
if demand increases and supply decreases then?
equilibrium price rises
when producers supply more, equilibrium price will?
fall
a situation in which the quantity demanded of a good or service at a particular price is equal to the quantity supplied at that price?
market equilibrium
in a price system of a market economy, prices are determined by?
market forces
lower prices generally?
mean there was a surplus
a demand curve is plotted by using a product's?
price
on a market demand and supply graph the vertical axis shows?
price
the maximum amount that a seller may charge for a good or service is called a ?
price ceiling
what is an established minimum price that buyers must pay for a good or service?
price floor
demand can be changed by?
price shift
on a market supply and demand graph, the point of market equilibrium always happens at the?
when it intersects