Understanding Supply and Price BJU Ch 4

What will be the result if the price of a good is higher than the Market Equilibrium Price (MEP)?

• A shortage

• A surplus

• A price floor

• A price ceiling

What will be the result if the price of a good is lower than the Market Equilibrium Price (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?

• Demand

• Product ceiling

• Equilibrium point

• Supply

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

• Supply curve

• Marginal utility schedule

• Demand curve

• Price floor

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?

• A decrease in the quantity supplied

• An increase in supply

• An increase in the quantity supplied

• A decrease in supply

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?

• Increase in demand

• Change in tastes and preferences

• Improvements in technology

• Increase in the price of substitute goods

What is economist Alfred Marshall best known for?

• Demand and supply model

• Market equilibrium theory

• Surplus/shortage paradox

• Price control concept

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

• Cutting production

• Increasing demand

• Cutting prices

• Removing the price floor