Economics

Apuntes

Economics Chapter 6 Study Guide 1.Market equilibrium 2.Equilibrium price 3.Surplus 4.Shortage 5.Disequilibrium 6.How is a surplus corrected? 7.Why is the market always moving towards equilibrium? 8.Competitive pricing 9.Incentive 10.Explain the 4 characteristics of the price system. 11.Why is the price system an efficient way to allocate resources? 12.Price ceiling, provide an example from Ch. 6.3. 13.Price floor, provide an example from 6.3. 14.Rationing 15.How are black markets created? What motivates consumers and producers in the black market? 16.Minimum wage 17.What kind of surplus might be created by the minimum wage? 18.Black market 19.Study the Supply and Demand scenarios packet.