Economics Chapter 4

What term describes the amount of a product a company is willing to provide at various prices?

• Demand

• Supply

• Product Ceiling

• Equilibrium Point

What does a rightward shift in a supply curve indicate?

• an increase in supply

• a decrease in supply

• an increase in the quantity supplied

• a decrease in the quantity supplied

What does a leftward shift in a supply curve indicate?

• an increase in supply

• a decrease in supply

• a. an increase in supply c. an increase in the quantity supplied

• a decrease in the quantity supplied

Economist Alfred Marshall is best known for the

• price control concept.

• surplus/shortage paradox.

• market equilibrium theory.

• demand and supply model.

If the government forces milk to be sold above the market equilibrium price, what results?

• shortage

• surplus

• increase in demand

• price ceilings

If the government forces homes to be rented below the market equilibrium price, what results?

• surplus

• shortage

• decrease in demand

• price floors

The free market is less efficient than the government at encouraging the correct supply of necessary goods.

• True

• False

Supply schedules contain more information than supply curves.

• True

• False

A change in the quantity supplied is represented as a shift up or down on the graphed supply line.

• True

• False

Alfred Marshall created the standard demand and supply model.

• True

• False