WorksheetsCH 6 ECON: Demand, Supply, and Prices
Total questions: 108
Worksheet time: 54mins
Name
Class
Date
1.
market equilibrium
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2.
equilibrium price
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3.
surplus
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4.
shortage
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5.
disequilibrium
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6.
competitive pricing
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7.
incentive
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8.
price ceiling
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9.
price floor
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10.
minimum wage
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11.
rationing
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12.
black market
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13.
if prices were at equilibrium on the graph and the price and quantity supplied is proportional and efficient in yielding revenue
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14.
the 6 factors that can change supply are input costs, labor productivity, technology, government action, producer expectations, and number of producers.
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15.
a. one of the 6 factors that change supply
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16.
b. one of the 6 factors that change supply
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17.
c. one of the 6 factors that change supply
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18.
d. one of the 6 factors that change supply
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19.
e. one of the 6 factors that change supply
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20.
f. one of the 6 factors that change supply
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21.
income, market size, consumer tastes, consumer expectations, substitutes, and complements
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22.
a. one of the 6 factors that change demand
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23.
b. one of the 6 factors that change demand
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24.
c. one of the 6 factors that change demand
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25.
d. one of the 6 factors that change demand
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26.
e. one of the 6 factors that change demand
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27.
f. one of the 6 factors that change demand
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28.
it will help you figure out how to get to your equilibrium price through records
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29.
WW2
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30.
a price ceiling helps the students when there are student discounted tickets. it hurts the seller or producers because they're loosing money but gaining loyal customers
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31.
price gouging is charging outrageously high prices for limited goods or services simply because they are able to and can lead to a black market
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32.
they have reached market equilibrium
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33.
the price when this is reaches as equilibrium priced (perfect)
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34.
surplus
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35.
shortage
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36.
consumer taste
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37.
it causes a decrease in demand
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38.
shift to the left
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39.
equilibrium price goes up
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40.
shift to the right
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41.
supply will decrease
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42.
shift to the left
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43.
equilibrium price goes up
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44.
supply will increase
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45.
equilibrium price decreases
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46.
equilibrium price decreases
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47.
equilibrium price decreases
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48.
equilibrium price increases
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49.
equilibrium price increases
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50.
surplus is above eq. price and shortage is below eq. price
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51.
B/C of the intersection of the supply and demand represent market eq.
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52.
changes in supply or demand causes changes in the quantities supplied or demanded @ every price. Therefore, the quantities will no longer by equal @ the original equilibrium price.
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53.
B/C producers are always searching for market equilibrium and consumers is always trying to find the best deal
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54.
surplus and shortage motivates producers to adjust prices until quantity supplied and quantity demanded are the same
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55.
competitive pricing in the market exists when producers will lower prices to get more customers while still making a profit
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56.
tennis store VS. sports authority opening up a tennis section
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57.
when theres a shortage, this is a signal for the producer to raise prices so they can supply more
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58.
surplus costs suppliers to leave the market
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59.
suppliers will have to lower their prices with a surplus
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60.
consumers tend to buy more when price is low
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61.
suppliers use advertising to convince consumers that prices are low and the "deal" is usually for a certain amount of time to get consumers in the market
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62.
it favors producers and consumers equally; it runs itself; it is flexible in responding to changes in the market; it allocates resources efficiently
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63.
a. 1 of the 4 characteristics of the price system
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64.
b. 1 of the 4 characteristics of the price system
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65.
c. 1 of the 4 characteristics of the price system
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66.
d. 1 of the 4 characteristics of the price system
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67.
Decisions about what and how much to produce are based on what consumers have demanded for and the prices at which producers can make money
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68.
Rising prices provide the incentive to enter a market by signaling the possibility of increasing revenue, and therefore, profits.
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69.
Falling prices provide the incentive to leave a market, as they signal the possibility of decreasing revenue, and therefore, profits
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70.
it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.
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71.
when a price limit is set @ the highest value you can change
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72.
usually the government will set the price ceiling to help the consumer pay a cheaper price
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73.
help: consumer
hurt: producer
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74.
est. lowest possible price for someone to pay for good or service
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75.
the government sets price floors
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76.
farmers- gov't wants to make sure farmers produce an abundance of food ->set price floors->so farmer will keep producing a large supply while still making a profit
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77.
# @ which minimum is set can create problems and tied into market value (eq. price), it can create more unemployment
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78.
a price floor is the minimum price that buyers may pat for a product; a price ceiling is a maximum price that may be charged for a product
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79.
there might be more workers willing to work for the minimum wage than there are jobs that employees are wiling to offer the wage @ above equilibrium
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80.
rationing attempts to allocate scarce resources fairly to everyone regardless of their ability to pay. the black market undermines this by permitting those who can pay higher prices to get more of the rationed goods.
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81.
they search for substitutes for the rationed goods
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82.
they both show the quantities of products supplied and demanded @ various prices
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83.
its purpose is supposed to help visualize the correlation price and quantity to reach eq. price
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84.
the interaction is eq. price, there is neither a surplus nor a shortage. Above is that quantity supplied exceeds quantity demanded and there's a surplus. Below is that quantity demanded exceeds quantity supplied and there is a shortage?
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85.
law of supply- producers are willing to sell more of a good or service at a higher price than they are at a lower price.
law of demand- when price goes down, quantity demanded increases, and when the price goes up, quantity demanded falls
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86.
they can both b/c holiday toys are fads and with expected popularity, the stores could be left with a shortage in that the demand exceeds supply and a surplus in that supply exceeds demand
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87.
when there is an imbalance between quantity demanded and quantity supplied
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88.
*when demand decreases, the eq. price falls
*when demand increases, the eq. price rises
*when supply decreases, the eq. price rises
*when supply increases, the eq. price falls
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89.
by entering a market @ a lower price, a new producer can add to its customer base while it mains overall profits by selling more units
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90.
neutral, market driven, flexible, efficient
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91.
neutral
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92.
market driven
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93.
flexible
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94.
efficient
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95.
for rising prices, on incentive to enter a market; for falling prices, an incentive to leave a market. for low price, incentive to buy; for high prices, incentive to find substitutes
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96.
higher prices act as an incentive for producers to enter a market
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97.
price is a powerful incentive to consumers
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98.
His incentive was to gain access to computer industry and make more revenue than his competitors, thus making more of a profit
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99.
consumers
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100.
can't set your own price, supply of resources will decline, reduces availability to market, reduce the quality of products
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101.
student discounted tickets
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102.
producers
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103.
increasing consumer prices, costs of imports increase due to increase in import tariffs, encourage inefficiency and oversupply in production
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104.
minimum wage
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105.
occurs when the gov't allocates goods and services using factors other than price
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106.
emerges when goods and services are illegally bought and sold in violation of price controls or rationing.
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107.
give up daily goods and turn them into rarities
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108.
takes business away from legitimate businesses. taxes aren't collected.
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100 %
