A higher price for a product

causes buyers to buy less of it

A market-clearing price is important because

it balances the amounts demanded and supplied

When there is a change in demand

buyers want to buy more than before at every price

A frost that destroys the orange crop in Florida will cause

supply curve of oranges to shift to the left

Economists explain that rationing

is necessary because of scarcity

What best describes the forces that make a price move up or down to its market-clearing level?

competition among buyers and competition among sellers

Lower prices make buyers want to buy more, but they make sellers want to sell less, as a result

there is only 1 price at which buyers and sellers agree

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Market Clearing Prices

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Questions 21

Answers

1
A higher price for a product
causes buyers to buy less of it
shifts both the demand and supply curves
encourages sellers to sell less of it
causes shortages
2
A market-clearing price is important because
it clears away scarcity
it causes buyers to disappear from the market
it balances the amounts demanded and supplied
it is the only price at which sellers are happy
3
Market-clearing prices
all of these
provide incentives for people to produce goods and services
provide information about consumers' wants and sellers costs
ration goods and services
4
When there is a change in demand
none of these
buyers want to buy more than before at every price
sellers want to sell more at every price
buyers and sellers compete against each other
5
If demand for a product increases faster than supply,what would probably happen to the price
none of the above
it would increase
it would remain unchanged
it would decrease
6
What Motor Vehicle company is ranked the highest on the Fortune 500 List?
Toyota
Ford
Honda
General Motors
7
Movement along the demand curve shows
price effect
none of these
change in demand
change in supply
8
A frost that destroys the orange crop in Florida will cause
demand of oranges to decrease
none of these
supply curve of oranges to shift to the left
supply curve of oranges to shift to the right
9
Which of the following best describes market competition?
competition among buyers
competition among sellers
competition between sellers and the government
competition between buyers and sellers
10
When demand is greater than supply of a product there is a
equillibirium
surplus
drop in price
shortage
11
What happens to prices when demand increases and supply decreases for a product
the price stays the same
none of these
the price decreases
the price increases
12
What happens to the price of a product when supply increases and demand decreases
the price decreases
none of these
the price remains unchanged
the price increases
13
Which company is #1 on the Fortune 500 List?
BP
Apple
Exxon
Walmart
14
The amounts sellers want to sell at different possible prices
surplus
demand
supply
shortage
15
To eliminate a surplus of a product, retailers usually
increase advertising
increase the price
throw it away
have a clearance sale
16
Economists explain that rationing
is necessary because of scarcity
occurs only when there are shortages
occurs only during times of war and emergencies
is not necessary in a free enterprise economy
17
What best describes the forces that make a price move up or down to its market-clearing level?
competition among sellers
competition between buyers and sellers
competition among buyers
competition among buyers and competition among sellers
18
Lower prices make buyers want to buy more, but they make sellers want to sell less, as a result
there is only 1 price at which buyers and sellers agree
sellers have to give in and sell any quantity buyers want
buyers and sellers cannot agree on how much to buy and sell
buyers have to give in and buy any quantity sellers want
19
Which of the following is a function of prices?
ration
motivate
send signals
all of these
20
If demand for a product increases faster than its supply, the price for the product
would rise
would remain unchanged
none of these
would fall
21
An increase in the quantity demanded at all prices will cause the demand curve to
shift to the right
stay the same
shift to the left
none of these

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