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Types of Goods,Supply and Demand, Price Ceiling

1. A ------------ ----------- is a legal maximum price above which a commodity cannot be sold.

2. Cars and gasoline are a good example of-----------(complements, inferior goods, substitutes)

3. The law of ---------- states that the quantity demanded is inversely to price.

4. If the demand for a good falls when income increases, the good is call a(n) ------------- good

5. The supply curves slopes ---------- because, all else equal, a higher price means a greater quantity supplied.

6. At the ----------- price, quantity demanded is equal to quantity supplied.

7. In a market, the price of any good adjusts until ---------- ------------ equals quantity supplied.

8. A shortage will occur at a price ----------- equilibrium and a surplus will occur at any price ---------- equilibrium.

9. A reduction in an input price will cause a change in quantity ------------, but not a change in --------------

10. If a price ceiling is below the equilibrium price, the quantity ----------- will exceed the quantity ------------.

Solution Preview

1. Maximum Retail Price

2. complements

3, Demand

4, ...

Solution Summary

Answer explains the concepts of Supply and Demand, Price ceiling and also explains the different types of goods by answering questions.