The price that occurs when quantity demanded = quantity supplied.

Chapter 6 Flashcards

1

If there were more nurses (labor) then what was needed, you could expect salaries to?

Salaries could decrease.
Salaries to remain the same.
Salaries could increase

2

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

The Government
Producers
Prices
Consumers

3

What happens to the prices after the shift?

Prices decrease
Prices increase
Nothing, price remains the same

4

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

Price ceiling.
Price floor.
Equilibrium price.
Price subsidy

5

What price point is equilibrium?

$8
$4
$2
$6

6

What is the new Equilibrium price after the shift?

$1.60
$.80
$1.20
$2.00

7

What is the new equilibrium price after the shift?

$1.20
$.40
$1.60
$.80

8

If there is a Shortage in the market what could happen?

Prices may fall.
Prices stay the same & production is cut.
The Market is in Equilibrium.
Prices may rise.

9

Do Price Controls have an impact on sales?

No
Yes

10

In this example, a shift did what to the prices?

Decreased them
Increased them
No change at all

11

Inventory includes which of the following

quantity sold by multiplied price
supply and demand
total sales
Stock on hand

12

If there is a shortage of nurses, we could expect.

Salaries could rise
Salaries could decrease
Salaries would not change

13

What is Equilibrium?

Any price that doesn't create a surplus.
The price that occurs when quantity demanded = quantity supplied.
Any Price the seller sets.
Any price that doesn't create a shortage.

14

What can a price floor cause?

A shortage
A surplus
Equilibrium
A shift of the curve.

15

If a decrease in the demand occurs what could happen?

Will decrease the price.
Will cause a shortage.
It will increase sales.
Will increase the price.

Chapter 6

Questions 15

Chapter 6

Questions 15