10 terms


1. The law of demand is illustrated by a demand curve that is:
Downward sloping
2. Which would cause a decrease in the quantity of computers supplied?
A decrease in the demand for computers
3. When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):
increase in the supply of gasoline.
4. A schedule which shows the various amounts of a product producers are willing and able to produce at each price in a series of possible prices during a specified period of time is called:
5. If the quantity supplied of a product is less than the quantity demanded, then:
There is a shortage of the product
6. If the market price is above the equilibrium price:
A surplus will occur and producers will produce less and lower prices
7. A competitive market will:
achieve an equilibrium price.
8. A product market is in equilibrium:
where the demand and supply curves intersect.
9. A headline reads "Storms destroy half of the lettuce crop." This situation would lead to a(n):
Increase in the price of lettuce and decrease in quantity purchased
10. Government-set price floors and price ceilings:
B. Interfere with the rationing function of price in a free market