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Economics CH 5--Prices are Set Flashcards | StudBud
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Economics CH 5--Prices are Set
Economics CH 5--Prices are Set
26 terms
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#GlobeFearon #equilibriumprice #shortage #surplus
Flashcards
26 cards
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Practice quiz
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Questions
26
Answers
1
Producers often have to lower prices to get rid of surplus goods.
False
Maybe
True
2
When a company ends up with a surplus, it...
has set its price too low
will often lower prices
will usually raise prices
3
__ is when the price demanded equals the amount supplied.
Equal
Intersection
Equilibrium
4
Once equilibrium price is set, it cannot be changed.
Maybe
True
False
5
When there is a surplus, what might the producers do?
make more and more of the product
reduce their prices to get rid of the goods
raise their prices
do absolutely nothing because the product sells itself
6
When there is a shortage, producers might...
raise prices to reduce demand for the product
Do nothing because the product sells itself
quit production
lower prices
7
When
producers
are willing to make more of a good/service as the price goes up supports...
the equilibrium price
The law of demand
the law of supply
Law of Economic Trade Commission
8
In a market economy, the forces of supply/demand set prices
Maybe
False
True
9
In America, prices are usually determined by ...
the government
businesses and buyers
people bargaining to arrive at a price
10
Some forces that affect supply and demand are costs of production, technology and income.
Maybe
True
False
11
What causes a surplus?
when producers supply too much of a good/service
when the price of the good is higher than expected
when consumers buy all the product
12
Why would a store want to get rid of surplus goods?
to trick the consumers into buying something for less money
to make a profit
to get newer products on the shelves
13
__ occurs when people want to buy more of a good than is available
Surplus
Shortage
Price Index
14
If a producer tries to sell a good for more than equilibrium, NOBODY will buy the good.
True, consumers just won't buy the product
Maybe
False, some consumers will buy a product no matter what the cost
15
Supply and demand curves...
run parallel to each other
intersect in five directions
work in the same direction
work in opposite directions
16
When do
shortages
of goods occur?
the good goes "out of style"
consumers buy more than sellers are willing to offer
companies charge more than people are willing to pay
17
What causes "shortages"?
when the equilibrium prices are higher than average
when the prices are so low that sellers keep making more
producers supply less than the amount consumers demand
18
When consumers think prices are too high, they will
boycott
. How will this help equilibrium $?
A boycott will create a surplus
It doesn't help at all
Producers might lower prices to force consumers to buy
19
If the school decided to raise the price of the school lunches to $5, what would likely result?
kids would eat more lunches
a surplus in school lunch
no change at all
20
In a market economy (US), prices are determined by businesses and consumers
False
Maybe
True
21
To cross at some point on a graph is to __.
intersect
equilibrium price
supply graph
22
__ are products that a business has in stock and ready to be sold
Surplus
Inventory
Shortage
23
The equilibrium price is the point where consumers buy all they want and sellers sell all
maybe
true
false
24
__ is where consumers and producers agree on the price and amount of good/service
Equilibrium price
The law of demand
The law of supply
Sale price with coupon reduction
25
Producers often have to raise prices to pay for production costs because of greater demand
maybe
false
true
26
When
consumers
will buy more of a good or service as the prices goes down supports the...
equilibrium price
law of demand
law of supply
Law of Economic Trade Commission
