Price equilibrium (Chap6)

Question 1

The equilibrium price of tacos is $2. They are current selling for $1. Therefore, __________.

Accepted Answer

There will be a shortage and price should increase

Question 2

According to supply & demand, what happens if a minimum wage is imposed above equilibrium?

Accepted Answer

Unemployment will increase

Question 3

Price=$30. Supply=100. Demand=100. Therefore, __________.

Accepted Answer

Price is at equilibrium, producers & consumers are satisfied

Question 4

Price floors are usually designed to reward __________________.

Accepted Answer

Sellers

Question 5

What would happen if there was a price floor imposed on cafeteria french fries at $5?

Accepted Answer

It would create a surplus

Question 6

A shortage occurs when _____________________.

Accepted Answer

Demand exceeds supply

Question 7

Price=$50. Supply=30. Demand=60. Therefore, ___________.

Accepted Answer

There is a shortage and price should increase

Question 8

MC volleyball team is in the state championship. How might this change demand for MC apparel?

Accepted Answer

Rightward shift in demand

Question 9

If a price floor is established above equilibrium ______________________.

Accepted Answer

It creates a surplus

Question 10

The Cubs have made the world series. How will this change the supply & demand curve for games?

Accepted Answer

Supply will stay a vertical line, demand will shift right

Question 11

If a price ceiling is established below equilibrium ______________________.

Accepted Answer

It creates a shortage

Question 12

In a supply and demand curve for labor, ____________ are the suppliers of labor.

Accepted Answer

Workers

Question 13

Movement is caused by _______. A shift is caused by __________.

Accepted Answer

Change in price and change in an outside factor

Question 14

If a price floor is established below equilibrium ______________________.

Accepted Answer

It has no effect

Question 15

An abundance of oil is discovered in the Pacific Ocean. What might be the effect?

Accepted Answer

Rightward shift in supply

Question 16

What would happen if there was a price ceiling imposed on cafeteria french fries at $5?

Accepted Answer

It would have no effect & price would remain at equilibrium

Question 17

When there is a surplus, price is _________________.

Accepted Answer

Price is too high and should decrease

Question 18

A surplus occurs when ________________________.

Accepted Answer

Supply exceeds demand

Question 19

What would happen if there was a price floor imposed on cafeteria french fries at $0.25?

Accepted Answer

It would have no effect & price would remain at equilibrium

Question 20

Price ceilings are usually applied on __________________.

Accepted Answer

Essentials

Question 21

Usually, at price equilibrium _______________________.

Accepted Answer

All of the above

Question 22

If a price ceiling is established above equilibrium ______________________.

Accepted Answer

It has no effect

Question 23

The law of supply explains that _______________________.

Accepted Answer

As price increases quantity supplied increases

Question 24

A shortage of trees increases the cost of producing paper. What might be the effect?

Accepted Answer

Leftward shift in supply

Question 25

The price of milk increases. What happens to the supply and demand of Oreo cookies?

Accepted Answer

Demand shifts left, supply does not change

Question 26

When there is a shortage, price is _________________.

Accepted Answer

Too low and should increase

Question 27

In a supply and demand curve for labor, __________________ goes on the vertical (y) axis.

Accepted Answer

Price of labor

Question 28

The law of demand explains that _______________________.

Accepted Answer

As price decreases quantity demand increases

Question 29

It's learned that a fast food restaurant uses rodent meat. What might be the effect?

Accepted Answer

Leftward shift in demand

Question 30

The government passes a subsidy on corn. What happens to the supply & demand of corn?

Accepted Answer

Supply of corn shifts right, demand is unchanged

Question 31

If supply shifts right but demand is unchanged then _________.

Accepted Answer

Price will decrease

Question 32

Price=$10. Supply=75. Demand=25. Total revenue is ___________.

Accepted Answer

$250

Question 33

What would happen if there was a price ceiling imposed on cafeteria french fries at $0.25?

Accepted Answer

it would create a shortage

Question 34

If demand shifts left and supply is unchanged then _____________.

Accepted Answer

Price will decrease

Question 35

In a supply and demand curve for labor, ____________ are in demand of labor.

Accepted Answer

Producers

Price equilibrium (Chap6)

Questions 35

Price equilibrium (Chap6)

Questions 35