CP2 Econ - Ch 6 Review

Quantity supplied is greater than quantity demanded at a given price

What is the equilibrium price for beats headphones

The federal minimum wage law demonstrates

The term "Price Supports" refers to a

The monetary value of a product

At $32 there is a shortage of -6 because

Prices are relatively stable, and the quantity supplied is equal to quantity demanded

Why $6 the equilibrium price

What would be the result of a $25.00 price ceiling on beats headphones

In a market economy, a high price is a signal for

Price that "clears the market"

Unsold product that causes suppliers to lower their prices

The maximum legal price that can be charged for a product

serves as an allocation signal when established by supply and demand

The price that produces neither a surplus nor a shortage

What is the equilibrium price on this the graph

Prices enable a market economy to adjust to unexpected events by

What happens to the price when the supply shifts from S₁ to S₂

A socially desirable price determined by factors other than the market

Condition that leaves suppliers wishing they had more product to sell

if a price ceiling is set below the equilibrium price the result would be a shortage

In the table, market equilibrium will occur at what price

where these occur, resources slowly shift to other markets where equilibrium prices prevail

The quantity demanded is greater than the quantity supplied

The shift from D₁ to D₂ causes quantity supplied to _ and quantity demanded to _ at a new price

At a given price, a surplus occurs when

System under which the government or another agency decides everyone's fair share of a product

Based on the law of supply and demand, the shortage of a product will cause the price to rise

The minimum wage, the lowest legal price that can be paid to workers, is an example of this

If a competitive market is at equilibrium, a sudden increase in demand causes a temporary