Equilibrium flashcard

Front

If the government forces milk to be sold above the market equilibrium price, what results?

Back

surplus

Front

If the government forces homes to be rented below the market equilibrium price, what results?

Back

shortage

Front

What happens to the market when the chocolate bars are priced at $4 each?

Back

surplus

Front

Refer to Graph 4-5. According to the graph, what are the equilibrium price and quantity?

Back

$5, 40.

Front

What happens to the market when the chocolate bars are priced at $1 each?

Back

shortage

Front

What will happen if there is more supply in the market than there is a demand of the product?

Back

surplus

Front

Any price where quantity demanded is not equal to the quantity supplied is known as disequilibrium.

Back

true

Front

Price is currently above equilibrium. This will create excess__________. We would expect price to ___________.

Back

supply; decrease

Front

A situation in which the quantity supplied is greater than the quantity demanded is

Back

a surplus

Front

What is the equilibrium quantity in this graph? Options: $1.50, $1.00, 600, 800

Back

600