click below
click below
Normal Size Small Size show me how
CCHS,Econ. Chap. 6/7
Test on Market Equilibrium, Market Ceiling, Market Floor
Question | Answer |
---|---|
Define "market equilibrium." **Where is this point on the graph? | It is when the buyer and seller have reached an equalized (informally 'agreed upon') price. **This is where the quantity supplied and quantity demanded intersect on the graph. |
Define "market clearing price." | This is the price that will 'clear' the product; The price at which most buyers will definitely buy a product. |
A shortage for a good or service is created by a ______________. | Price ceiling |
This is the highest price that a business can sell a good, as a result of government regulations. Give an example. | Price ceiling (ex. gas) |
This is the lowest price a business can set for a good or service. | Price floor (ex. minimum wage) |
A surplus of a good or service is created by a ______________. | Price floor |
Give an example of perfect competitions. Is there product differentiation in this market? | An example of perfect competitions is farming. There is not product differentiation in a perfect competition market structure. (tomato, t-ah-mot-oh.) |
Which market structures are easy to enter? | Perfect Competition and Monopolistic Competition are 2 market structures that are easy to enter. |
Which market structures definitely have advertising? | Monopolistic Competition AND Oligopolies definitely have advertising. |
Give an example of a Pure Monopoly, an Oligopoly, Monopolistic Competition, and Perfect Competition. | Pure Monopoly-utility companies and Major League Baseball; Oligopoly-airline companies and vehicle manufacturers; Monopolistic Competition-soda companies, chip companies, shampoo companies; Perfect Competition-Farmers |
This is the market structure that has only ONE PRODUCER in the market structure. | Pure Monopoly |
Which market structures have pricing that depends on 'the competition?' | Monopolistic Competition and an Oligopoly |
Which market structures have no price differentiation? | Perfect Competition and Pure Monopoly |
There are 4 Types of Monopolies. What are they? | Natural, Geographic, Technological, and Government |
What is a natural monopoly? Give an example. | A natural monopoly is a monopoly that occurs because of consumer choice. An examples are Facebook and MySpace (Facebook became popular and MySpace became 'a thing that was no longer used.) |
What is a geographic monopoly? Give an example. | This is a monopoly that occurs because of the geographical location. An example is when there is one gas station in a large area. The owner can charge a high price because consumers in that area are more likely to frequent that gas station. |
What is a technological monopoly? | This is when one owns a patent or right to a product. No one else can make it because all right reserved. |
What is a government monopoly? Give and example. | This is when a small town owns and runs a business. An example is public utilities. |
Which market structures do NOT use advertising? | Pure Monopoly and Perfect Competition |
If the price of labor increases, does this impact SUPPLY or DEMAND? Increase or decrease? | Supply, decreases supply. |
If the price of iron decreases, does this impact SUPPLY or DEMAND? Increase or Decrease. | Supply, increases supply |
If a group of people migrate into an area, does this impact SUPPLY or DEMAND? Increase or Decrease. | DEMAND, increases demand |
If Kmart closes down, does this impact SUPPLY or DEMAND? Increase or Decrease? | Supply, decreases supply. |
If a business opens up an online store, does this impact SUPPLY or DEMAND? Increase or Decrease? | Supply, increases supply. |
If a sewing machine breaks, does this impact SUPPLY or DEMAND? Increase or Decrease? | Supply, decreases supply. |
If a new factory opens up and many people from the community get jobs, does this impact SUPPLY or DEMAND? Increase or Decrease? | Demand, increases demand |
If peanut butter goes on sale, does the SUPPLY or DEMAND of jelly change? Increase or Decrease. | Demand, increases |
If Skippy Peanut Butter goes on sale, what happens to Peter Pan Peanut Butter? | The demand of Peter Pan Peanut Butter would decrease. |