Chapter 6 & 7 Review

Front

The situation in which the quantity supplied of a good at a particular price is equal to the quantity demanded at that price is called

Back

market equilibrium

Front

The two curves of a market demand and supply graph intersect at

Back

one point

Front

The result of quantity supplied being greater than quantity demanded is called

Back

surplus

Front

The result of the quantity demanded being greater than the quantity supplied is called

Back

shortage

Front

A decrease in demand causes equilibrium prices to

Back

fall

Front

The twin desires of making the highest profit and luring customers away from rival producers often results in

Back

competitive pricing

Front

The price system is

Back

flexible

Front

In the price system, incentives encourage producers to act in certain ways consistent with

Back

their own best interest

Front

The equilibrium price in the market is determined by

Back

consumers and producers

Front

The success of the Dell company was caused by producing computers at a lower price than competitors

Back

producing computers at a lower price than competitors