Lesson 7 - Prices

The monetary value of a product

• price ceiling

• target price

• economic model

• price

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

Which is the opposite of a surplus?

• Inelastic

• Shortage

• Equilibrium

• Floor

Which term best describes rent control?

• Price ceiling

• Subsidy

• Equilibrium price

• Nonrecourse

The Law of Demand states that as quantity demanded decreases...

• wages decrease
• production increases
• price increases
• quality decreases

According to the Law of Supply, what happens as price increases? 

• The quantity supplied increases
• The quantity supplied decreases
• The supply curve shifts to the left
• The supply curve shifts to the right

Which of these best describes market equilibrium? 

• the price of Pepsi does not vary much from week to week 
• Pepsi production provides a good profit for the manufacturer
• everyone who wants Pepsi can easily afford to buy it 
• the amount of Pepsi for sale matches the amount that people want to buy

Where supply and demand intersect

• equilibrium 
• elasticity
• demand curve
• supply curve