Economics Unit 4

What will be the result if the price of a good is lower than the MEP?

• A shortage
• A surplus
• A price floor
• A price ceiling

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

• A shortage
• A surplus
• A price floor
• A price ceiling

Which concept shows how much of a product can be sold at different price levels?

• Demand
• Product ceiling
• Equilibrium point
• Supply

Which concept shows how much of a product can be made at different price levels?

• Supply curve
• Marginal utility schedule
• Demand curve
• Price floor

What does a rightward shift in a supply curve indicate?

• Supply curve
• Marginal utility schedule
• Demand curve
• Price floor

What does a leftward shift in a supply curve indicate?

• A decrease in the quantity supplied
• An increase in supply
• An increase in the quantity supplied
• A decrease in supply

What explains the drop in price of laptop computers since they were first introduced?

• A decrease in the quantity supplied
• An increase in supply
• An increase in the quantity supplied
• A decrease in supply

What is economist Alfred Marshall is best known for?

• Increase in demand
• Change in tastes and preferences
• Improvements in technology
• Increase in the price of substitute goods

From the standpoint of the supplier, what is the best solution to a surplus?

• Demand and supply model
• Market equilibrium theory
• Surplus/shortage paradox
• Price control concept

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

• Cutting production
• Increasing demand
• Cutting prices
• Removing the price floor