Prices Test

legal maximum that can be charged for a good

government control and regulation of the amounts charged for rented housing

How does rationing encourage black markets?

When quantity supplied is greater than quantity demanded

How many chocolate bars should they made and what price should they charge for each one?

Government-set price floor on earnings

when quantity demanded is more than quantity supplied

During WWII, the United States used rationing to

using resources for their most valuable purposes

Why does a government place price ceilings, such as rent control, on some "essential goods"?

When quantity supplied is not equal to quantity demanded

motivation to sell based on potential profit

government-imposed price control or limit on how low a price can be charged for a product

What happens to the price of a good or service when a shortage of that good or service occurs?

What happens when a market is at disequilibrium and prices are flexible?

Point at which quantity demanded equals quantity supplied

a sudden shortage of a good

business conducted without regard for government controls

dividing up goods or services without considering the price

resources are distributed according to price