Chapter 6 Economics

quantity demand is greater than quantity supplied, buyers waiting in line and can go without

• quantity supplied

• subcities

• disequilibrium

• buyers

where demand and supply come together, and balance between profit and quantity supplied

• equilibrium

• number of sellers

• market entry

• efficient resources

max price legally priced for a good, placed on essential goods that could become to expensive

• quotas

• weather

• price floor

• price ceiling

when the government takes steps to control the prices

• government sales

• responsibility of sellers

• market entry

• government intervention

minimum price paid for a good or service

• discount

• price floor

• sale

• changes in income

lets consumers know if the goods are plentiful or scarce

• supply increase

• market entry

• prices are signals

• prices are incentives

demand changes equilibrium price, if demand goes up-shift right price goes up. if demand goes down-shift down, price goes down

• changes in equilibrium

• quality demand

• shifting supply curve

• supply schedule

Consumers buy products they want, and producers make enough money to stay in business

• prices are incentives

• supply and demand determine price

• price ceiling

• price floors

when buyers consume products that influence sellers

• quotas

• number of units produced

• increase in goods

• keeps sellers producing

a large number or amount of things where there isn't a shortage

• quantity supplied

• supply decrease

• no shortages

• overproduction