Invisible Hand Quiz

A market in which goods or services are bought and sold illegally.

• Black Market

• Free Market

• Command Economy

• Communism

The price where the quantity demanded and the quantity supplied are equal. The price where neither shortages nor surpluses exist.

• Supply

• Demand

• Equilibrium

• Shortage

A legally established maximum price for a good or service.

• Price Ceiling

• Price Floor

• Price Control

• Minimum Wage

Any legally set price for a good or service

• Price Ceiling
• Price Floor
• Price Control
• Minimum Wage

The amount by which the quantity demanded of a good or service exceeds the quantity supplied at a given price

• Shortage

• Surplus

• Scarcity

• Equilibrium

The amount by which the quantity supplied exceeds the quantity demanded at a given price

• Shortage

• Surplus

• Equilibrium

• Scarcity

A legally established minimum price for a good or service.

• Price Ceiling

• Price Floor

• Price Control

• Minimum Wage

Price ceilings cause shortages

• when the maximum price is set below equilibrium

• when the maximum price is set above equilibrium

• always

• randomly

If a price ceiling is set above equilibrium

• demand will increase.

• supply will decrease.

• the market will control the price of gas.

• sellers will increase prices to the new maximum.

When there are problems with supply, demand, or price

• the government should be ready to help.

• the market will replace those goods with other goods.

• profit becomes impossible.

• the market will fix those problems on its own.