Economics Chapter 6

In economics, when quantity supplied is greater than quantity demanded, a shortage exists.

The stock of goods that a business or store has on hand.

The condition in which quantity demanded of a good is greater than the quantity supplied.

Equilibrium can be expressed as

A legislated price set above the equilibrium price.

A legislated price set below the equilibrium price.

Price controls

When a surplus occurs, producers will not be able to sell all they had hoped to sell.

All of the ticket prices for Yankee Stadium will be the same.

The quantity of a good that is bought and sold in a market that is in equilibrium.

A price ceiling is a legislated maximum price that is above the equilibrium price.

In a free enterprise market, who or what allocates resources?

A legal maximum price at which a good can be sold is a

Higher demand means higher prices.

If a shortage exists, sellers are likely to raise the price of the good.

Prices will usually rise when there is an increase in demand.

If all else remains the same, a decrease in the demand for a good

Supply and demand go together to determine price.

Equilibrium price is

The condition in which the quantity supplied of a good is greater than the quantity demanded.

When the quantity demanded is greater than quantity supplied, a shortage exists in the market.

One of the most important functions of price is to send signals to buyers and sellers.

If a greater supply of labor were combined with decreased demand for labor, we might expect

The price at which a good is bought and sold in a market that is in equilibrium.

If there were a shortage of nurses, we would expect

When the quantity demanded equals the quantity supplied, the market is said to be in equity.

Inventory includes which of the following?

A price floor results in

In a market, the point at which the quantity of a good is equal to the quantity supplied.