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16 Cards in this Set
- Front
- Back
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Rationing |
Allocating something scarce among people who want more than is avaible. |
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Market-clearing price |
The price that balances the amount the buyers want to buy with the amount sellers want to sell. |
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Supply |
The amounts sellers want to sell at different possible prices. |
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Demand |
The amounts buyers want to by at different possible prices. |
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Shortage |
How much more of a product buyers want to buy than sellers want to sell at a given prices. |
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Surplus |
How much more of a product sellers want to sell than buyers want to buy at a given price. |
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Comepetition |
Rivalry among buyers or among sellers. |
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Incentive to produce |
Reasons for producing goods and serivces. |
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Change in demand |
Buyers want to buy more than before at every price. |
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Information |
Market prices provide this for producers and consumers. |
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A higher price for a product |
Causes buyers to buy less of it. |
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A market-clearing price is important |
it balances the amounts demanded and supplied. |
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What best describe the forces that make a price move up or down to its market clearing level |
Competition among buyers and competition among sellers. |
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What best illustrates the rationing function of market-clearing prices |
The price that advertisers pay for television time has risen over the years as companies have increasingly sought to advertise their products in that medium. Ticket prices to professional sporting events have gone up as more fans have wanted to attend. |
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If the demand for a products increases faster than its supply, what probably would happen to the product's market-clearing price |
It would rise. |
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Market-clearing prices do what in a free enterprise |
1)Act as a messengers that tell producers about consumers' wants. 2)Act as a messenger that tell consumers about producers' costs of providing products. 3)Encourage consumers to conserve and business to be efficient. |
