BJU Economics Chapter 4

A mandate that prices for certain products may not rise

A barrier intended to prevent the price of a certain item from falling below the market price.

Businesses often find surpluses advantageous because they reduce production costs.

Economist Alfred Marshall is best known for the

What term describes the amount of a product a company is willing to provide at various prices?

Which of the following is NOT a demand solution to a surplus?

Allowing the market to dictate prices helps the poor.

What is the most significant reason for a drop in prices of cell phones and laptops since they were first introduced?

From the standpoint of a supplier, what is the best solution to a surplus?

When businesses raise their prices higher than the market equilibrium and increase production only to have less demand

A man puts together a chart showing how much of a product he can afford to make at various prices. What is this called?

Governmental mandates are often the cause of shortages.

Americans first learned the danger of price controls during the Civil War.

If the government forces homes to be rented below the market equilibrium price, what is the result?

A product's market equilibrium price does not change.

Price ceilings are often counterproductive.

When the price of a good is lower than its market equilibrium price,

If the government forces milk to be sold above the market equilibrium price, what is the result?

What is the demand solution to a shortage?

You sell a bagel for $3 and the cost of your supplies to make it doubles but the price you charge stays the same- wht#b?

a producer is willing to supply a different quantity of a good solely due to a change in its market price