Ch. 6: Prices Economics

Price where quantity supplied equals quantity demanded.

• Equilibrium price

• Equilibrium quantity

• Price floor

• Price

The highest legal price that can be charged for a product:

• Price

• Price ceiling

• Price floor

• Target price

The lowest legal price that can be paid for a product:

• Price

• Price Ceiling

• Price Floor

• Surplus

What do low prices signal buyers to do?

• Nothing

• Buy more

• Buy less

• Substitute

In a competitive market economy, prices are considered:

• Dictated

• Uncompromising

• Favorable

• Neutral

Equilibrium is reached when what occurs?

• Quantity supplied equals quantity demanded

• There is no change in the quantity demanded

• Price increases

• Prices are inelastic

What is the equilibrium quantity in this graph?

• $1.50
• $1.00
• 600
• 800

A ___ ___ keeps prices form going any higher and causes a ___.

• price ceiling; shortage
• price ceiling; surplus
• price floor; shortage
• price floor; surplus

A ___ ___ keeps prices form going any lower and causes a ___.

• price ceiling; shortage
• price ceiling; surplus
• price floor; shortage
• price floor; surplus

When the demand for a product or service is higher than the supply this causes what?

• shortage
• consumer
• surplus
• equilibrium