Unit Two Lesson Six Economics

Suppose home prices in a city are increasing. What is a logical result of this price increase?

a minimum price set by the government to prevent prices from going too low

One example of when the government might impose rationing is

Which statement is true?

the quantity of a good or service demanded by consumers and supplied by producers when the market is in equilibrium

Markets are governed by

How do consumers experience excess demand?

Rent control is an example of

Point at which the quantity of a product demanded by consumers in a market equals the quantity supplied by producers

Which of the following is an example of a supply shifter?

the controlled distribution of a limited supply of a good or service

True of False: The impact of shifts in demand and supply is not always immediately clear.

Why is it often difficult for the government to end price controls?

a maximum price set by the government to prevent prices from going too high

an illegal market in which goods are traded at prices or in quantities higher than those set by law

government-imposed limits on the prices that producers may charge in the market

What happens when the price of a good adjusts to bring the quantity demanded and the quantity supplied into balance?

At the farmers market, what happens when watermelons reach their equilibrium price?

the price at which the quantity of a product demanded by consumers equals the quantity supplied by producers

Hurricanes Katrina and Rita hit the Gulf Coast and disrupted the supply of oil. What was the impact on gas prices?