Prices 1
Price is
the monetary value of a product
A graph, equation, or illustration is an example of a/an...
Price ceiling
Highest legal price
Fixed costs
Incentive
makes you want to do something
Neutrality
Not favoring one or the other
voluntary
done by free choice
Price floor
lowest legal price
Output decreases with increased production
diminishing returns
Substitute
competing products for demand
Allocating goods and services without a price
Rationing
A situation where quantity supplied is less than quantity demanded
shortage
Price floor for farming set by the government
Target price
Variable costs
changing costs
Products that go together
compliments
Problems with rationing
fairness, expense, distorted incentives, abuse, misuse
a situation where quantity supplied is greater than quantity demanded
surplus
How do markets talk?
gold prices rise, stock prices fall, oil prices rise
Factors that affect supply
cost of resources, productivity, taxes, subsidy, government regulations, number of sellers, expectations
Tastes change with increasing prices
elasticity
How do prices affect our decisions?
allocate resources, determine value
How is the equilibrium price different for commercials during the Superbowl compared to the rest of the year?
Supply/demand, shortage of commercial time, number of viewers, etc
Name an economist that opposed government price controls
Milton Friedman
Should multinational corporations have a duty to their home countries?
yes/no and valid reason
What are common factors for "hot products?"
timing, high demand, etc.