Econ Prices Quiz 1

As a consumer, how can you communicate with producers about prices? Select all that are true.

• Choose to buy at current price

• Yell at sales associates

• Make up bad stuff about the company and post it on social media

• Choose not to buy at current price.

Matching

• more choice for consumers

• Low prices incent...

• Producers

• High prices encourage...

• Consumers

• Increased competition leads to...

True or false? Externalities can have positive, or negative, effects.

• True

• False

Match the following with the best example

• New Amazon center next to restaurant

• Instability

• Pollution without penalty

• Positive Externality

• k-12 Schools

• Negative Externality

• Covid - restaurants

• Public Good

Market equilibrium

• • reached when the quantity supplied and the quantity demanded for a product are equal at the same price.

• • reached when the quantity supplied and the quantity demanded for a product are different at the same price.

• the price is the same as the quantity

Surplus

• The demand is greater than the supply

• the Quantity supplied is less than the quantity demanded at offered price

• the Quantity supplied exceeds quantity demanded at offered price

Which is NOT something producers can do if there is a surplus?

• Lower Prices

• Decrease Quantity Supplied

• Increase demand

• Raise Prices

• Shortage:

• • when quantity demanded exceeds the quantity supplied at offered price

• • when quantity demanded is less than the quantity supplied at offered price

• Supply exceeds demand

What can producers do if they have a shortage? Click all that are correct.

• Increase Prices

• Increase Quantity Supplied

• Lower Prices

• Decrease Demand

If something causes a shift in the demand curve, or the supply curve, what happens to the equilibrium point?

• It stays at the same price

• That's not possible

• It moves to the new price point where the curves intersect