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Supply and Demand Chapter 18 Check 3

Supply and Demand Chapter 18 Check 3. Yeee haaa!!! I love notes!!!! Write everything in yellow. That will pretty much be everything. Draw this chart on your paper. A Demand Schedule. - How much consumers are willing to buy at various prices. A Supply Schedule.

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Supply and Demand Chapter 18 Check 3

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  1. Supply and Demand Chapter 18 Check 3 • Yeee haaa!!! I love notes!!!! • Write everything in yellow. That will pretty much be everything.

  2. Draw this chart on your paper

  3. A Demand Schedule -How much consumers are willing to buy at various prices

  4. A Supply Schedule -How much sellers are willing to sell at various prices

  5. Equilibrium -Point of balance between price and quantity

  6. buyers will find on shelves at equilibrium….. -There will be ample supply on shelves

  7. firms/businesses will find at equilibrium…. -There will be enough buyers for their goods

  8. Disequilibrium occurs when… -When quantity supplied is not equal to quantity demanded

  9. Excess Demand is…. -Quantity demanded is more than the quantity supplied

  10. What will happen to customers at excess demand? -They will have to wait in long lines or not get the product they want

  11. What should a business do at excess demand? -Increase the price

  12. Excess Supply -Quantity supplied exceeds the quantity demanded

  13. The cause of excess supply.. -High prices or excess or over production

  14. What will customers do at excess supply? -Buy less or buy an alternative

  15. Price Ceiling -Maximum price set by law that sellers can charge for a good or service

  16. An example of a price ceiling is... -Rent Control, can only charge so much

  17. problems that price ceilings cause • -Reduces quantity and quality • -Waiting lists, discrimination, and bribery

  18. Price Floors -Minimum price set by the government that must be paid

  19. Example….. -Minimum Wage

  20. if price floors are set wrong…… -Decrease in employment and benefits -Prices of products increase sharply

  21. The government tried to work price floors into agriculture in past years… -Minimum price set, but if it goes below then the government creates demand by purchasing excess crops

  22. Now, a better idea…. -Provides emergency financial aid to farmers

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