Economics - Prices and Decision Making - Chapter 6

Cause: Government keeping prices down by setting price ceilings. Effect ?

The following will cause a price change in a market except for.

The lowest legal wage that can be paid to most workers.

The monitary value of a product determined by supply and demand.

Cause: Government allocates scarce goods and services w/o a price system. Effect ?

Cause: people decide farmers should receive more for milk and set a price floor. Effect ?

A system in which the government decides everyones fair share.

Cause: a competitive market is experiencing alternating small surplus and shortage. Effect ?

The price that clears the market by leaving no surplus or shortage.

Cause: market is at equilibrium, but product goes out of style quickly. Effect ?

Associated with Stage II of production