Chapter 6 Test Review MGH

If a market is at equilibrium and there is a sudden increase in demand then

The adjustment process in a competitive market continually moves toward

What happens to a market in equilibrium when there is an increase in supply

High prices will result in surpluses

The point at which quantity demanded and quantity supplied are equal is called

When does surplus exist?

What happens when wages are set above the equilibrium level by law?

What happens when the supply of a non perishable good is greater than the consumer wants ?

The maximum price that can be legally charges for a good or service is called

The economic impact of a holiday fad is illustrated by

Prices serve as a link between the producer and consumer

Low prices will result in shortages

All of the following are characteristics of rationing EXCEPT

Disequilibrium occurs when

The minimum wage is an example of a price ceiling, the highest wage that can be paid

What BEST explains why rationing not a price based system was used during WWII ?

Rationing is a common form of distribution in

Which statement explains why prices rise in a market?

On which kind of goods do governments generally place price ceilings?

Buyers and sellers have the same goal in the market place