CH 6 Economics Test Review

The amount by which quantity demanded exceeds quantity supplied.

When there is voluntary exchange it is reasonable to believe

The cost of time and information needed to carry out market exchange.

The amount by which quantity supplies exceeds quantity demanded.

Mismatch between quantity demanded and quantity supplied.

Consumers are more willing and able to buy the product at every price.

If there is a surplus producers tend to do this to the price of their products.

Taco is $2.00, quantity demanded = 25 & quantity supplied = 175 is there a shortage or surplus

Producers are less willing and able to supply the product at every price.

A maximum legal selling price above which a product cannot be sold.

If demand increases and supply increases what happens to equilibrium.

When there is a shortage of products what do producers usually do with the price of the product

A minimum legal price below which a product cannot be sold.

Producers are more willing and able to supply the product at every price.

Each of the following will cause the demand for butter to increase EXCEPT

Quantity consumers are willing to buy equals the quantity that producers are willing to sell.

Difference between total amount consumers are willing and able to pay & what they actually pay.

Consumers are less willing and able to buy the product at every price.