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Surplus and Shortage 1 Flashcards | StudBud

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Surplus and Shortage 1

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Questions 10

Answers

1
a decrease in demand brings..
fall inequilibrium quantity
rise in equilibrium quantity
rise in equilibrium price
a fall in equilibrium price
2
<p>willingness to buy=willingness to produce</p>
equilibrium
supply
equillibrium quantity
shortage
3
QD>QS is called...
surplus
supply
shortage
inventory
4
inventory is the stock of goods that a business or store has on hand
false
true
5
Why does price rise when there is a shortage?
It is a better quality good
higher prices motivate other suppliers to increase
<p>businessses do not want anyone to buy their product</p>
it becomes more rare
6
What causes equilibrium prices to change?
Supply and demand
<p>a surplus</p>
amount of product
amount of inventory
7
<p>QS>QD is called..</p>
inventory
equilibrium
shortage
surplus
8
equilibrium quantity is the price of a good in an equilibrium market
false
true
9
QD>QS is called..
equilibrium
equilibrium quantity
inventory
surplus
10
Why does price fall when a surplus occurs?
Businesses want their customers to get a good deal
<p>All sellers want to reduce their inventory </p>
Businesses need to get rid of their product
Storing goods can be costly and Inefficent