ECON Final Exam

Front

In economics, a shortage of a product occurs when: the product's price falls below its market-clearing level, the product's market-clearing level reduces overall demand, the people who buy the product consume more than they need, the businesses producing the product become less efficient

Back

the product's price falls below its market-clearing level

Front

When there is a shortage, the price will usually?

Back

rise

Front

What is the equilibrium quantity?

Back

70

Front

If the price is $2, there will be...

Back

A shortage of 45

Front

In order to reduce shortages, business owners will likely ____ prices.

Back

increase

Front

What is the major difference between scarcity and a shortage?

Back

Shortages are temporary and scarcity always exist.

Front

The market equilibrium price is the price at which:

Back

the quantity demanded is the same as the quantity supplied

Front

A price ceiling will lead to a ______.

Back

shortage

Front

Minimum wage is an example of a 

Back

price floor

Front

What is the equilibrium price?

Back

The price at which the quantity demanded equals the quantity supplied.