UE ch 6 Prices

Demand for a product increased. What happens to the equilibrium price?

What is the result of setting an effective price ceiling on rents?

What do price ceilings and price floors prevent?

A maximum price consumers may be required to pay for a good or service.

Supply for a product decreased. What happens to the equilibrium price?

Government controls the distribution of a limited supply of a good or service without prices.

Economist do not like price controls because they are

Demand for a product increased. What happens to the equilibrium quantity?

An effective price ceiling leads to not enough production or excess demand. What is excess demand?

The price marked by the equilibrium point on a supply and demand graph

Limits on how high or low certain prices may be according to the government.

Which of the following would shift the supply curve to the right?

A minimum price consumers are required to pay for a good or service.

As a result of a shift in supply, what happened to the P & Q of the product?

The quantity of a good that consumers buy equals the quantity that producers are able to sell

The quantity marked by the equilibrium point on a supply and demand graph

Shortages can lead to goods traded at prices or in quantities higher than those set by law.

An effective price floor leads to excess supply. What is excess supply?

After a shift in supply, a price floor is set at P₁. What is the likely result?

Supply for a product decreased. What happens to the equilibrium quantity?