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Equilibrium price is
the price that occurs when the quantity demanded is equal to the quantity supplied
If all else remains the same, a decrease in the demand for a good will decrease the
price
If a greater supply of labor were combined with decreased demand for labor, we might expect
wages to fall
In a free enterprise market, who or what allocates resources?
prices
If there were a shortage of nurses, we would expect the wages of nurses to
increase
Inventory includes which of the following?
stock on hand
Equilibrium can be expressed as
Qd=Qs
A price floor results in
shortage
Price controls decrease the amount of
exchange that occurs
A legal maximum price at which a good can be sold is a
price ceiling
When there is a surplus in the market, which of the following is true?
Prices may fall
In what area is there a shortage?
3
In what area is there a surplus?
1
The price in a market that indicates that the quantity buyers are willing and able to buy is equal to the quantity that sellers are willing and able to produce and offer for sale is called the _______ price.
Equilibrium
_______ is what we call the stock of goods that a business or store has on hand.
Inventory
A legislated minimum price that is above the equilibrium price is called a(n)________.
price floor
