If the government sets a ceiling price for amount farmers can charge for beef, will steak price

decrease, less incentive to produce, less supplied, price up

If the market clearing price for donuts is $3 if the price per dozen is $1 then

competition among buyers will drive up the price

A higher price for a product

causes buyers to buy less of it

What best describes the forces that make a price move up or down to it equilibrium price level?

Competition among buyers and competition among sellers

A market clearing price is important because

it balances the amount demanded and supplied

studbud

Market Clearing Price

20 termsStudBud Administration197 plays

Functions of Price in a Market system, Surplus and Shortages in the market

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
the demand for product increases faster than its supply what would happen to equilibrium price
it would fall
it would rise
there is not enough info. to answer
it would remain unchanged
2
Allocating something scarce among people who want more than is available
competition
rationing
shortage
change in demand
3
Which of the following best illustrates the rationing function of market clearing prices?
The price TV advertisers pay rose as more advertise on TV
none of these
both of these
Tickets for sporting events rose as more fans want to attend
4
If the government sets a ceiling price for amount farmers can charge for beef, will steak price
decrease, less incentive to produce, less supplied, price up
increase incentive to produce, more supplied, price falls
decreases, less produced, more supplied, price falls
increase, more produced, price falls
5
If the equilibrium price for donuts is $3 at a price of $4 there is ..,
a shift in supply
a surplus of donuts
neither a shortage or surplus
a shortage of donuts
6
If the market clearing price for donuts is $3 if the price per dozen is $1 then
sellers will sell a lot of donuts
the demand for donuts will change
competition among buyers will drive up the price
donuts will not be scarce
7
Market prices provide this for producers and consumers
incentives to produce
information
changes in demand
increases in supply
8
how to change a shortage to a surplus without change supply or demand
create substitute
increase producers
increase price
decrease buyers
9
A higher price for a product
causes buyers to buy less of it
shifts both supply and demand curves
causes shortage
encourages sellers to sell less of it
10
How much more of a product sellers want to sell than buyers want to buy at a given price
Incentive to produce
surplus
supply
competition
11
Market-clearing prices do which of the following in free enterprise?
messenger telling buyers about producers costs of production
all of these
encourage consumers to conserve & businesses to be efficient
act as a messenger to tell producers what people want
12
Rivalry among buyers or among sellers
shortage
competition
surplus
scarcity
13
What best describes the forces that make a price move up or down to it equilibrium price level?
Competition among buyers and competition among sellers
competition among buyers
competition between buyers and sellers
competition among sellers
14
Reasons for producing goods and services
change in demand
incentive to produce
market clearing price
shortage
15
The amount sellers want to sell at different possible prices
shortage
surplus
supply
Incentive to produce
16
The price that balances the amount buyers want to buy with the amount sellers want to sell
competition
information
market clearing price
rationing
17
The amount buyers want to buy at different possible prices
supply
demand
incentive to produce
surplus
18
A market clearing price is important because
it causes buyers to disappear from the market
it balances the amount demanded and supplied
it clears away scarcity
it shifts both the supply and demand curve
19
Buyers want to buy more than before at every price
Change in demand
competition
surplus
incentive to produce
20
how much more of a product buyers want to buy than sellers want to sell at a given price
surplus
incentive to produce
shortage
supply

Market Clearing Price Flashcards | StudBud