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