Demand, Supply, & Prices : 4/4/16

Question 1

As buyers and sellers interact, the market moves toward m______ e___________.

Answer 1

Market equilibrium

Question 2

E________ p_____ is the price at which quantity demanded and the quantity supplied are equal.

Answer 2

Equilibrium price

Question 3

On the graph, the _________ axis shows the various p_____ at which salads are offered for sale and bought.

Answer 3

Vertical, prices

Question 4

The _____________ axis shows the q______ of salads, whether it is the quantity demanded or the quantity supplied.

Answer 4

Horizontal, quantity

Question 5

S_______ is the result of quantity supplied being greater than quantity demanded.

Answer 5

Surplus

Question 6

S________ is the result of quantity demanded being greater than quantity supplied.

Answer 6

Shortage

Question 7

When there is a s________, producers _____ prices in an attempt to balance quantity supplied and quantity demanded.

Answer 7

Shortage, raise

Question 8

When there is a s_______, producers _____ prices in an attempt to balance quantity supplied and quantity demanded.

Answer 8

Surplus, lower

Question 9

If Demand D_______ or Supply I_________ Then Equilibrium Price ____.

Answer 9

Decreases, increases, falls

Question 10

If Demand I________ or Supply D_______ Then Equilibrium Price _____.

Answer 10

Increases, Decreases, Rises

Question 11

A p____ c______ is the legal maximum price that sellers may charge for a product.

Answer 11

Price ceiling

Question 12

A p___ f_____ is a legal minimum price that buyers must pay for a product.

Answer 12

Price floor

Question 13

The m_______ w___ is a legal minimum amount that an employer must pay for one hour of work.

Answer 13

Minimum wage

Question 14

R________ is a system in which the government allocates goods and services using factors other than price.

Answer 14

Rationing

Question 15

A b_____ m_______ involves illegal buying or selling violation of price controls or rationing.

Answer 15

Black market

Question 16

A b______ p____ c_______ occurs below equilibrium.

Answer 16

Binding price ceiling

Question 17

A b_______ p____ f____ occurs above equilibrium.

Answer 17

Binding price floor

Question 18

Six factors can cause change in demand : i_____, m_____ s___, c_______ t_____, c_______ e_________, s_______ g_____, and c___________ g____.

Answer 18

Income, market size, consumer tastes, consumer expectations, substitute goods, complementary goods

Question 19

Six factors cause a change in supply. : I____ c____, l____ p________, t________, g_______ a_____, p_______ e_________, and n______ of p_______.

Answer 19

Input costs, labor productivity, technology, government actions, producer expectations, number or producers

Question 20

C_________ p______ occurs when producers sell goods and services at prices that best balance the twin desires of making the highest profit and luring consumers away from rival producers.

Answer 20

Competitive pricing

Question 21

Four characteristics of the Price System: 1. It is n______. 2. It is m______ d_____. 3. It is f______. 4. It is e________.

Answer 21

Neutral, market driven, flexible, efficient

Question 22

An i_________ encourages people to act in certain ways.

Answer 22

Incentive

Question 23

For producers, the price system has two great advantages: I_________ and m_________.

Answer 23

Information, motivation

Question 24

P_____ act as signals and incentives to consumers.

Answer 24

Prices

Question 25

Brand marketers rely on the c_________ p________ that a certain l____ is worth a higher price.

Answer 25

Consumer perception, logo