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test 5
test 5
20
Economics
1st Grade
12/17/2012

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Term
market prices provide this for producers and consumers
Definition
information
Term
buyers want to buy more than before at every price
Definition
change in demand
Term
allocating something scarce among people who want more than is available
Definition
rationing
Term
the amounts sellers want to sell at differen possible prices
Definition
supply
Term
how much more of a product sellers want to sell than buyers want to buy at a given price
Definition
surplus
Term
reasons for producing goods and services
Definition
incentive to produce
Term
the price that balances the amount buyers want to buy with the amount sellers want to sell
Definition
market-clearing price
Term
the amounts buyers want to buy at different possible prices
Definition
demand
Term
rivalry among buyers or among sellers
Definition
competition
Term
how much more of a product buyers want to buy than sellers want to sell at a given price
Definition
shortage
Term
higher price for a product
Definition
causes buyers to buy less of it
Term
a market-clearing price is important because
Definition
it balances the amounts demanded and supplied
Term
the market-clearing price of doughnot is
Definition
none of the above
Term
if the price of doughnuts is $1 per dozen, then
Definition
competition among buyers will force the price up
Term
at a price of $1 per dozen, there is
Definition
a surplus of doughnuts equal to 200 dozen per day
Term
what best described the forces that make a price move up or down to its market-clearing level
Definition
both a and b
Term
which of the following best illustrates the rationing function of market-clearing prices?
Definition
both of the above
Term
in the early 1990s a company in France introduced a new type of snow skis...
Definition
providing an incentive to produce skis
Term
if the demand for a product increases faster than its supply, what would probably happen to the products market-clearing price?
Definition
it would rise
Term
market-clearing prices do which of the following in free enterprise?
Definition
all of the above
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