Economics Prices and Decision Making

The monetary value of a product established by supply and demand

• ration

• coupon

• price

• worth

High prices signal buyers to buy less and producers to do what?

• produce more

• produce less

• buy less

• buy more

Low prices signal buyers to buy more and producers to do what?

• produce more

• produce less

• buy less

• buy more

Prices are ____________ because they favor neither the producer nor the consumer.

• comprehensive

• unrealistic

• controlled

• neutral

A system in which a government agency decides everyone’s “fair” share

• rationing

• coupon

• price

• worth

A ticket or a receipt that entitles the holder to obtain a certain amount of a product

• stub

• resource

• ration coupon

• portion

A simplified version of complex behavior expressing in the form of an equation, graph or illustration

• economic model

• equilibrium price

• survey

• rationale

The price at which the number of units produced equals the number of units sold

• economic model

• equilibrium price

• survey

• rationale

a situation in which the quantity supplied is greater than the quantity demanded at any given price.

• warranty

• shortage

• inventory

• surplus

a situation in which the quantity demanded is greater than the quantity supplied at a given price.

• warranty

• shortage

• inventory

• surplus