Supply and Demand Review

What law enforcement agency is responsible for making sure that businesses compete fairly?

• Federal Bureau of Investigation (FBI)

• Central Intelligence Agency (CIA)

• Federal Trade Commission (FTC)

• National Security Agency (NSA)

One company controls the entire market

• Supply Restrictions

• Price Fixing

• Monopoly

• Consumer-Allocation Agreement

Term for when competing businesses all agree to sell less of the product

Which of the following best describes “equilibrium”?

• The point on a supply and demand curve where the two lines intersect

• The ideal price to set for a particular good or service

• The price where buyers and sellers of a product are in the most agreement

• All of the following are true about equilibrium

Term for competing businesses all agree what the selling price is

Monopolies are ILLEGAL.

• True

• False

Term for a direct relationship (as price increases, quantity also increases)

• Supply

• Demand

Refers to the behavior of consumers

What is the goal of putting a price ceiling in place?

• Drive up the price of a good to make it easier for consumers to find

• Help producers by having the government buy surplus goods

• Drive down the price of a good to make it easier for consumers to afford

• Help consumers by giving out surplus of the good

Refers to the behavior of producers.