Markets
What type of economy does the United States have?
Market economy
When supply exceeds demand price goes ______
Down
What is it known as when two or more businesses try to sell the same or similar goods in the same market?
Competition
An extra benefit that encourages someone to take a certain action is known as _________
Incentive
In a market economy who owns the businesses?
The people
Price goes ____ when demand exceeds supply
Up
How does increased competition impact the price of goods and services?
Price goes down
______ is the way in which one acts or conducts one’s self
Behavior
True or False. The goal of a business is to sell as many goods as it can for as little money as it can.
False. The goal of a business is to sell as many goods as possible as it can for as much money as it can.
Business like _____ demand and consumers like ________ supply.
High
BakersVille is a small town with one gas station. The gas station charges 10¢ more per gallon than the gas stations 20 miles away. Residents want the gas station to reduce its prices. What can BakersVille do to have the gas station lower their prices?
BakersVille could open up a new gas station.
A person who takes a risk to start their own business in the hopes of making a profit.
Entrepreneur
What does supply and demand affect?
Price
What is it called when supply equals demand (or demand equal supply)?
Equilibrium
Miss Goins is selling pies to raise money for charity. There are 15 pies for sell, but so far Miss Goins has only sold one. What would be the best way for Miss Goins to sell more pies?
Decrease the price of the pies
What is price?
The amount of money required as payment for a good or service. Or how much something cost.
______ is what producers make to sell and ________ is what consumers want to buy.
Supply, demand
What determines the price of a good or service?
How much of it is available and how much of it people want.
There are three stores selling laptops. One of the stores decided to lower their prices. What is going to happen to the other stores?
More customers are going to come to the store with the lower prices, which will result in the other stores dropping their prices as well.
Give an example of a price incentive a store may have.
Buy one get one free, buy one get one half off, 25% off, etc.