Chapter 4b (pp 59-64)

Question 1

What is the point at which quantity demanded and quantity supplied are equal?

Answer 1

equilibrium

Question 2

What is a graphic representation of the quantity of goods supplied at different prices?

Answer 2

supply curve

Question 3

What is a list of numbers that compares prices with quantity supplied

Answer 3

supply schedule

Question 4

More items are produced than sold

Answer 4

surplus

Question 5

What are the six factors that can cause a change in supply?

Answer 5

technology; resource prices; prices of related goods; number of sellers; producer expectations; gov’t taxes, subsidies, and regulations

Question 6

What results when the quantity demanded exceeds the quantity supplied at a given price?

Answer 6

shortage

Question 7

What term refers to monetary government aid given to businesses to encourage production?

Answer 7

subsidies

Question 8

What will happen to the quantity supplied of a good when the price of that good decreases?

Answer 8

decreases