Equilibrium price is

• any price that doesn't cause a surplus.
• any price that doesn't cause a shortage.
• the price that occurs when the quantity demanded is equal to the quantity supplied.
• any price that sellers decide to set.

Which of the following is true when there is a shortage in the market?

• Prices may rise.
• Prices may fall.
• prices stay the same and producers cut production.
• The market is in equilibrium.

If all else remains the same, a decrease in the demand for a good

• will increase sales.
• will increase the price.
• will decrease the price.
• will cause a shortage.

In a free enterprise market, who or what allocates resources?

• producers
• consumers
• prices
• the government

Inventory includes which of the following?

• supply and demand
• total sales
• stock on hand
• quantity sold multiplied by price

Price controls

• decrease the amount of exchange that occurs.
• increase the amount of exchange that occurs.
• don''t really have an impact on exchange.
• increase the opportunities people have to make themselves better off.

A legal maximum price at which a good can be sold is a

• price subsidy.
• price ceiling.
• price floor.
• equilibrium price.

At the equilibrium price, which of the following is true?

• Buyers and sellers are satisfied.
• Buyers have bought everything they wanted to buy.
• Sellers have sold everything they wanted to sell.
• All of the above

When there is a surplus in the market, which of the following is true?

• Prices may rise.
• Prices may fall.
• Prices stay the same and producers increase production.
• The market is in equilibrium.

Which graph illustrates what would happen if candy producers are informed that the cost of sugar has doubled?

• graph a
• graph b
• graph c
• graph d