Chapter 4 Flashcards
As prices declined quantity demand goes………in quantity supplied goes…….
Up and up
An increase in supply means that the quantity supplied rises.
And all prices
A decrease in demand means that qualities demands falls.
At all prices
When the market price is higher than the equilibrium price there is a what?
A surplus
When the market price is lower than the equilibrium price there is a what?
Shortage
True or false. At equilibriumthere may be a shortage or a surplus.
True
A demand schedule can be presented as what?
A table and a graph
If the equilibrium price of corn is a three dollars and the government encloses a floor of a four dollar a bushel the price of corn will go to what?
It will increase to four dollars
On a graph where the curve goes from zero to the right up what does that show?
A supply schedule
At equilibrium is quantity supplied is 16 quantity demanded is what?
16
Is market price is above equilibrium quantity supplied is greater than quantity demanded. True or False
True
As prices rise the quantity ……. rises.
Supplied
If the government sets a price ceiling of $.25 for a loaf of bread, the most likely consequences would be what?
A shortage of bread
At equilibrium quantity demanded ………..quantity supplied.
Always equals
True or false. The demand curve slopes downward to the right and the supply curve slopes upward to the right.
True
There is a shortage of quantity demanded over quantity supplied when what?
The market is below equilibrium price
The market price ………..the equilibrium price.
Can be higher than or lower than
The forces of demand and supply ensure that at equilibrium what?
That there are no shortages or surpluses.
True or false. At equilibrium the quantity demanded is always equal to the quantity supplied.
True
Which of the following is not true of equilibrium price?
All consumers can buy all they demand.
It is determined by interaction of supply and demand.
It is set by the government.
It is also in as the market clearing price.
It is set by the government
When quantity supplied equals quantity demanded what?
The market is clear.
If supply increases and demand remains and unchanged, equilibrium quantity will ……… and equilibrium prices will ………
Rise and fall
