Supply and Demand

In a market economy, a high price is a signal for

The basic decision for a supplier is

The supply curve is the mirror image of

A market situation where the quantity demanded is equal to the quantity supplied.

All of the following is a reason for change in supply except

If the price of a product falls, producers will generally

When the government sets the maximum legal price that can be charged for a product it is a

If the price of a product increases, producers will generally

Products that are made quickly and easily without large amounts of money tend to have

Taxes have the same effect on a change in supply as an increase in

A chart listing the quantities that offered for sale at all possible prices in the market is a

Prices serve as a link between producers and

At a given price, a shortage occurs when

Products that require large amounts of money and technology to change production tend to have

Demand is based on consumer purchase, whereas supply is based on

When there is neither a surplus nor a shortage, the market has reached

Because prices do not favor producers or consumers, they are described as

Increased productivity and technology

If producers expect higher prices in the future, they may

In a market economy, a low price is a signal for

When the government sets the lowest legal price that can be paid for a product it is called a

A product that is intentionally sold below equilibrium in order to attract customers.

In a free market, prices are usually the result of

Government subsidies have the effect of

At a given price, a surplus occurs when

Supply tends to increase, or shift to the right, when