AP Macro Unit 1 Supply and Demand Review

Point at which supply and demand come together

• price ceiling
• excess demand
• equilibrium
• disequilibrium

When quantity supplied is not equal to quantity demanded

• price ceiling
• excess demand
• equilibrium
• disequilibrium

Legal maximum that can be charged for a good.

• price ceiling
• excess demand
• equilibrium
• disequilibrium

What is the government controlled price ceiling on apartment prices called?

• floor pricing
• rent control
• equilibrium level
• rent monitoring

When the government sets a price floor on earned income, it is called which of the following?

• market equilibrium rate
• base-level wage
• minimum wage
• employment guarantee

Why does the government place price ceilings on some "essential" goods?

• to prevent inflation during to reduce supply for these goods
• to keep business people from making large profits
• to keep the goods from becoming too expensive
• to reduce demand for these goods

When quantity supplied exceeds quantity demanded at a certain price.

• shortage
• fad
• search costs
• surplus

The financial and opportunity costs consumers pay in looking for a good or service.

• shortage
• fad
• search costs
• surplus

When quantity demanded exceeds quantity supplied at a certain price

• shortage

• fad

• search costs

• surplus

Equilibrium in a market means which of the following?

• the point at which quantity supplied and quantity demanded are the same
• the point at which unsold goods begin to pile up
• the point at which suppliers begin to reduce prices