Economics Chapter 6 Test Review

When a shortage exists in a market, price is

Higher prices generally

When the quantity demanded is greater than the quantity supplied at a given price, a

On a market demand and supply graph, the vertical axis shows

When a college sets aside event tickets for students and alumni, it has imposed a

system in which a government or other institution decides how to distribute a good or service

Critics charge that rationing is an unwise economic policy because it

Lower prices generally

On a market demand and supply graph, the point of market equilibrium always happens

What is the main form of communication between producers and consumers

a free enterprise economy answers the  basic economic questions using?

A government regulation that sets a maximum price for a particular good is called a

On a market demand and supply graph, the horizontal axis shows

In the price system of a market economy, prices are determined by

When a surplus exists in a market, price is

The minimum wage is an example of a

Which of the following is an example of a price ceiling?

A government sometimes rations a good because the

Limitations of the price system are sometimes called

place where goods are exchanged illegally at prices higher than established prices is called

When consumers demand more goods and services at every price, equilibrium price will

Over time, a price floor may cause

Companies engage in competitive pricing to

When producers supply more, equilibrium price will

When the quantity supplied is greater than the quantity demanded at a particular price, a

Suppliers often reduce prices because they

Governments sometimes set prices to

Over time, a price ceiling may cause

A government regulation that sets a minimum level for prices is called a