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Economics CH 5--Prices are Set Flashcards | StudBud
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Economics CH 5--Prices are Set
Economics CH 5--Prices are Set
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#GlobeFearon #equilibriumprice #shortage #surplus
Flashcards
26 cards
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Questions
26
Answers
1
When there is a surplus, what might the producers do?
make more and more of the product
do absolutely nothing because the product sells itself
raise their prices
reduce their prices to get rid of the goods
2
What causes "shortages"?
producers supply less than the amount consumers demand
when the prices are so low that sellers keep making more
when the equilibrium prices are higher than average
3
When consumers think prices are too high, they will
boycott
. How will this help equilibrium $?
Producers might lower prices to force consumers to buy
It doesn't help at all
A boycott will create a surplus
4
__ are products that a business has in stock and ready to be sold
Inventory
Shortage
Surplus
5
Supply and demand curves...
work in opposite directions
intersect in five directions
run parallel to each other
work in the same direction
6
When a company ends up with a surplus, it...
has set its price too low
will usually raise prices
will often lower prices
7
__ is where consumers and producers agree on the price and amount of good/service
Equilibrium price
Sale price with coupon reduction
The law of demand
The law of supply
8
When
consumers
will buy more of a good or service as the prices goes down supports the...
equilibrium price
law of supply
law of demand
Law of Economic Trade Commission
9
Some forces that affect supply and demand are costs of production, technology and income.
False
Maybe
True
10
In America, prices are usually determined by ...
businesses and buyers
people bargaining to arrive at a price
the government
11
If the school decided to raise the price of the school lunches to $5, what would likely result?
kids would eat more lunches
a surplus in school lunch
no change at all
12
Once equilibrium price is set, it cannot be changed.
True
Maybe
False
13
What causes a surplus?
when consumers buy all the product
when the price of the good is higher than expected
when producers supply too much of a good/service
14
To cross at some point on a graph is to __.
equilibrium price
intersect
supply graph
15
__ occurs when people want to buy more of a good than is available
Price Index
Surplus
Shortage
16
In a market economy, the forces of supply/demand set prices
True
Maybe
False
17
Producers often have to lower prices to get rid of surplus goods.
Maybe
True
False
18
Producers often have to raise prices to pay for production costs because of greater demand
maybe
true
false
19
When
producers
are willing to make more of a good/service as the price goes up supports...
Law of Economic Trade Commission
the law of supply
the equilibrium price
The law of demand
20
When there is a shortage, producers might...
lower prices
Do nothing because the product sells itself
quit production
raise prices to reduce demand for the product
21
In a market economy (US), prices are determined by businesses and consumers
Maybe
False
True
22
__ is when the price demanded equals the amount supplied.
Equilibrium
Equal
Intersection
23
The equilibrium price is the point where consumers buy all they want and sellers sell all
false
maybe
true
24
Why would a store want to get rid of surplus goods?
to get newer products on the shelves
to make a profit
to trick the consumers into buying something for less money
25
If a producer tries to sell a good for more than equilibrium, NOBODY will buy the good.
True, consumers just won't buy the product
False, some consumers will buy a product no matter what the cost
Maybe
26
When do
shortages
of goods occur?
the good goes "out of style"
consumers buy more than sellers are willing to offer
companies charge more than people are willing to pay
