You sell t-shirts in a market _____ price controls, where you charge the equilibrium price.

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Based on Market Efficiency: No Price Controls and Market Inefficiency: Price Controls

Terms in this set (20)

In a market without price controls, producers can charge the _____, so that consumers will buy all of their products.
-surplus price
-shortage price
-equilibrium price

-equilibrium price

Suppose you produce T-shirts, and the equilibrium price for a T-shirt is $5. You haven't really done much research, so you decide to charge a price of $3 per shirt. At this price, there will be an _____ of T-shirts.
-excess demand
-equilibrium
-excess supply

-excess demand

Suppose you produce T-shirts, and you are charging less than the equilibrium price. By buying all of your products and demanding more, consumers are pressuring you to _____ your supply of T-shirts.
-increase
-decrease
-keep constant

-increase

Suppose you are a T-shirt producer in a market without price controls. You are charging a price that is below the equilibrium price for T-shirts. Market pressures will eventually _____ the price of your T-shirts.
-raise
-not change
-lower

-raise

Suppose you are a T-shirt producer in a market without price controls. When you sell T-shirts at the equilibrium price, you will not _____ any resources because you will supply what consumers demand.
-waste
-use
-offer

-waste

Please refer to the graph to answer this question. At $50 per pair of shoes, consumers demand _____ than you supply.
-more shoes
-the same amount of
-fewer shoes

-fewer shoes

Not enough demand by consumers will move the market _____ the demand curve.
-up
-down

-down

Please refer to the graph to answer the question. Without price controls, this market will adjust until it reaches a price of _____ per pair of shoes. This is the price at which producers supply the same amount that consumers demand.
-$35
-$50

-$35

Please refer to the graph to answer the question. When there was an excess supply of shoes, there was also a(n) _____ of shoes. In a market without price controls, the market will adjust until it reaches the _____.
-shortage, highest price
-surplus, equilibrium price
-equilibrium, equilibrium price

-surplus, equilibrium price

Select all that apply.
Select the items that describe what happens at the equilibrium price.
-Consumers have enough goods, at the given price.
-The whole economy wastes its resources.
-There are many shortages and surpluses.
-Producers use their resources efficiently.
-Producers supply the exact goods that consumers buy.

-Consumers have enough goods, at the given price.
-Producers use their resources efficiently.
-Producers supply the exact goods that consumers buy.

Rent control sets the _____ amount of rent that a property owner can charge.
-lowest
-highest

-highest

Price controls that exist in the economy include price floors such as _____ and price ceilings such as _____.
-rent control, tax credit
-rent subsidies, equilibrium price
-minimum wage, rent control

-minimum wage, rent control

Price controls can cause _____ or _____.
-shortages, surpluses
-efficiency, shortages
-equilibrium prices, surpluses

-shortages, surpluses

Phil works in a _____ job and earns minimum wage.
-high-paying
-low-paying

-low-paying

Supporters of minimum wage say that it provides _____ for people with low-paying jobs.
-more money
-less personal income
-more jobs

-more money

Opponents of minimum wage say that it causes a job _____, which can increase unemployment.
-shortage
-surplus

-shortage

Supporters of rent control say that it _____ the price of renting an apartment.
-does not change
-raises
-lowers

-lowers

You earn money from working part-time at the local grocery store. You also receive a weekly allowance from your parents. Both your job earnings and your allowance are part of your _____.
-rent
-personal income
-minimum wage

-personal income

_____ are another way that the government helps people to afford a place to live.
-Efficiency controls
-Rent subsidies
-Scarce resources

-Rent subsidies

Minimum wage is one way for the government to help people with low-paying jobs to afford basic goods. Another way to achieve this goal is with _____.
-less personal income
-more taxes
-the Earned Income Tax Credit

-the Earned Income Tax Credit

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