A shortage will develop when...

• Quantity supplied is greater than quantity demanded
• Quantity demanded is greater than quantity supplied
• The govt gives taxes to businesses
• quantity supplied and quantity demanded are equal

Which of the following describes when the government sets a price floor?

• The price cannot go any higher

• The price cannot go any lower

• The price will remain the same

Which of the following describes when the government sets a price ceiling?

• The price cannot go any higher
• The price cannot go any lower
• The price will remain the same

Which of the following is an example of a price floor?

• equilibrium
• rent control
• minimum wage

If hot dog buns become cheaper, the demand for hot dogs will...

• Increase
• Decrease
• Remain the same
• Have no effect

If a new machine is developed that cuts the time for making lawn mowers in half, the SUPPLY of lawn mowers

• increases
• decreases
• no change

When prices rise for elastic goods, what happens to total revenue?

• Total Revenue Goes Down
• Total Revenue Goes Up
• Total Revenue Stays The Same

A shortage will develop when...

• Quantity supplied is greater than quantity demanded
• Quantity demanded is greater than quantity supplied
• The govt gives taxes to businesses
• quantity supplied and quantity demanded are equal

The following is a factor that will not cause the demand curve to shift:

• Advertising
• Population
• Price
• Consumer expectations

Consuming more of one good because of a change in price of another good is known as the 

• income effect
• substitution effect
• elasticity effect
• demand effect