Name ______________________
Date _____________ Period ___
Chapter 6: Markets, Equilibrium, and Prices
1.
Why is the demand for corn growing?
2. What happens when Demand meets Supply?
3. What is Market equilibrium? Draw a supply and demand graph and label
Equilibrium.
4. Why is equilibrium price also known as the market-clearing price?
5. Tell me the equilibrium price and quantity of watermelons in Figure 6.2.
6. How does economist Alfred Marshall compare supply and demand to the
blades of scissors?
7. What is disequilibrium?
8. What happens when the price is too low?
9. When the price is too high we have excess supply, which means….
10. Please draw two graphs showing excess supply and excess demand.
11. What three questions do economists ask to analyze when an event causes the
demand or supply curve to shift?
12. What does economist Thomas Sowell say about prices?
13. How do prices crate incentives to work and produce?
14. Analyze figure 6.5, how did Hurricane Katrina and Rita affect gas prices?
Why?
15. How do prices act as messengers for producers, consumers, and workers?
16. What are price controls?
17. Give an example of a price floor and a price ceiling.
18. Draw a binding price floor and price ceiling on a supply and demand graph.
19. What is rationing and why does it occur?
20. How do shortages give rise to the black market?