Prices
The amount one must pay to buy a product.
What is Price?
The law of demand describes the behavior of these people.
What is a buyer?
The market process by which buyers and sellers negotiate to find the market price.
What is Price Discovery?
A condition in which there are not enough items for people to buy.
What is a Shortage?
As price rises, buyers purchase ____.
What is fewer (or less)?
The minimum allowed price imposed by a government. If a ___ is set above the Market Price, it results always in a surplus or overabundance.
What is a Price Floor?
The relationship between Price and the number of items that buyers are willing to purchase.
What is the Law of Demand?
A sharp increase in price that is perceived as being unfair.
What is Price Gouging?
A condition in which more items are produced than buyers wish to purchase, resulting in waste.
What is Surplus?
As prices rise, suppliers will ____.
What is sell more?
The maximum allowed price imposed by a government. If a ___ is set below the Market Price, the result is always a shortage of goods.
What is a Price Ceiling?
Laws that are simply descriptions of the world we live in. Humans cannot change them. Example: The Law of Gravity.
What is a Natural Law?
The relationship between Price and the number of items that sellers are willing to bring to the market.
What is the Law of Supply?
An expression economist use to indicate that no product can be "free".
What is No Free Lunch?
As the price of goods fall, buyers will ____.
What is buy more?
The price at which the number of items that suppliers are willing to sell equals the number that buyers are willing to purchase.
What is Market Price?
When butter prices in Europe were forced higher than market price sellers produced more than people wanted to buy which resulted in ____.
What is a Butter Mountain?
This is a marketing strategy that allows the seller to do a deep discount at a time when he has a lot of stock on hand but then return to a normal price.
What is Buy One Get One Free?
A permit required to legally operate a taxi. It artificially set the supply of taxis creating a shortage and limiting competition.
What is a Taxi Medallion?
In 1999 this president of Venezuela set prices below market price which resulted in shortages.
Who is Hugo Chavez?