Lap EC012 Post Test Review

When demand is greater than supply, a ___ often develops.

What is one factor that will determine how much a customer is willing to pay for a good or service?

What are the incentitives in our economy that encourage producers to change and reallocate their resources?

Excess demand is gone when the selling price reaches the point at which consumers are willing to buy___producers sell.

After a mild winter, the supply of sleds should be___than demanded. Therefore, the price would be___.

Who gets the goods and sercices produced in our economy?

How do producers answer the economic question of what to produce in a market economy?

A business comparing when it anlyzes the cost of buying wood desks versus the cost of buying metal desks:

Excess demand and excess supply cause changes in...

How much a consumer is willing to pay for a product depends partly on the consumer's opinion of the product's...

What exist when producers produce more than buyers are will and able to buy?

An example of change in relative Price ratio. Red apples= $.60 per pound and apples are $.80 per pount

Amount of money for which an item sells in the competitivek marketplace?

What usually happens to the demand for a good or service when the price increases?

Producers will lower their price when supply is greater than demand?

If the units produced is 15,000 and the units demanded is 15,000 this is Equilibrium price?

Any factor that causes changes in supply and demand will cause cause changes in...

Prices set higher than the euilibrium price will result in...

When supply is greater than deman, a what often devolops?

Some energy companies ofer free electricity at night and on weekends because durning those time.

What do econsumers, producers, and resouce owners need to have in order to make economic decisions?

How are prices used in our economy?

Example of the substitution effect: the price of laptops went up recently, so Francis decided to buy a table instead.

Store sells T-Shirts for $10. What would occur if all factors remained the same, the demand for the T-Shirt was $10.