2023 Markets, Equilibriums and Prices Quiz

On which kinds of goods do governments generally place price ceilings?

• Cheap ones that could become more expensive without ceilings
• Ones that aren't necessary but have become customary
• Those that are essential and cheap
• Those that are essential but too expensive for some people

What happens when the supply of a good is greater than the demand?

• The good is discarded

• The good becomes a luxury and price rises

• Either a surplus remains unsold or the price drops

• Either the good is saved for later sale or the price goes up

Producers and Consumers in a mixed economy convey information through:

• Lawyers

• Government

• Prices

• Contracts

A shortage will develop when ____.

• The quantity supplied of a good is greater than the quantity demanded
• The Equilibrium quantity supplied is lower than actual quantity supplied
• The government provides subsidies to producers
• The market price is below the equilibrium price

In this market, a mandated price of $1 would be _____.

• The equilibrium price

• a price floor

• a price ceiling

• a subsidy

At the equilibrium price, how many slices of pizza will be sold?

• 150
• 200
• 250
• 300

The price of pizza is $2.50. At the end of the day, how many unsold slices of pizza are left?

• None
• 50
• 100
• 200

Why do fads often lead to shortages, at least in the short term?

• Buyers and sellers are unable to agree on a price
• laws prevent stores from responding in time to prevent it
• manufacturers charge higher prices than stores can pay
• demand goes up so fast - time is needed for Quantity Supplied and Price to adjust

When quantity supplied exceeds quantity demanded at a certain price.

• shortage
• fad
• search costs
• surplus

How does a minimum wage above the equilibrium rate affect the labor market?

• It leads to a higher equilibrium wage for labor.

• It leads to a lower equilibrium wage for labor.

• It leads to a decreased supply of labor

• It leads to an excess supply of labor.