Economics Chapter 6

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

Higher demand means higher prices.

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

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

Equilibrium can be expressed as

Price controls

Inventory includes which of the following?

A legislated price set below the equilibrium price.

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

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

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.

A price floor results in

If there were a shortage of nurses, we would expect

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

A legislated price set above the equilibrium price.

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

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

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

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

Equilibrium price is

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

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

Supply and demand go together to determine price.

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

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

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

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

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