Econ 4/4/16 Notes

Question 1

As buyers and sellers interact, the market moves toward

Answer 1

Market Equilibrium

Question 2

The price at which quantity demanded and the quantity supplied are equal.

Answer 2

Equilibrium Price

Question 3

The result of quantity supplied being greater than quantity demanded.

Answer 3

Surplus

Question 4

The result of quantity demanded being greater than quantity supplied.

Answer 4

Shortage

Question 5

Producers lower prices in an attempt to balance quantity supplied and quantity demanded when their is _______

Answer 5

Surplus

Question 6

Producers raise prices in an attempt to balance quantity supplied and quantity demanded when their is ________

Answer 6

Shortage

Question 7

Occurs above equilibrium

Answer 7

Binding Price Floor

Question 8

Occurs below equilibrium

Answer 8

Binding Price Ceiling

Question 9

A system in which the government allocates goods and services using factors other than price.

Answer 9

Rationing

Question 10

A legal minimum amount that an employer must pay for one hour of work .

Answer 10

Minimum Wage

Question 11

The legal maximum price that sellers may charge for a product.

Answer 11

Price Ceiling

Question 12

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

Answer 12

Price Floor

Question 13

If demand decreases or supply increases then

Answer 13

Equilibrium price falls

Question 14

If demand increases or supply decreases then

Answer 14

Equilibrium price increases

Question 15

Encourages people to act in certain ways

Answer 15

Incentive

Question 16

rely on the consumer perception that a certain logo is worth a higher price.

Answer 16

Brand Marketers