CP1 Econ Ch 6 Test

Prices are established by (based on the definition)

When supply changes, if demand is elastic it causes a ------ change in price

To end a shortage, 

In a competitive market, prices move towards

Which of the following is NOT an advantage of a price system?

How do you fix a surplus of goods

Price floors cause a ------ of goods and services

At the price of $4, which is true?

The ideal situation where prices are stable is called the

At the price of $1, which is true?

Price ceilings cause a ------ of goods and services

If supply stays constant and demand decreases

If demand stays constant and supply decreases,

the lowest legal price that can be paid for a good or service

What is the equilibrium price?

If demand stays constant and supply decreases, what happens to the price

When supply changes, if demand is inelastic it causes a ------ change in price

Equilibrium price is ------ on a curve

the highest legal price that can be paid for a good or service