Questions and Answers
What is the term used to describe a situation where the quantity demanded is greater than the quantity supplied?
Disequilibrium
In a shortage situation, what are the two main reasons for there being a shortage?
Too few produced goods and excess demand
What type of price control is implemented by the government when they set a maximum legal price that sellers can charge for a product or service?
Price ceiling
When buyers cannot afford essential goods at the equilibrium price, what type of price control is usually imposed?
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In a situation where there is excess demand, what term is used to describe this imbalance in the market?
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