A public good
Is provided by the government
Is free
Has the properties of being non executable and non diminishable
Has external cost
If the market price is below the equilibrium price
Demand will be less than supply
Quantity demanded will be less than quantity supplied
Quantity demanded will be greater than quantity supplied
Quantity demanded will equal quantity demanded
It is necessary to ration a good whenever
A surplus demand
Supply exceeds demand
Demand exceeds supply
There is a perfectly inelastic demand for the good
If a maximum price is set above equilibrium there will be:
A price fall
A price increase
Excess supply
Excess demand
If the price in a market is fixed by the government above equilibrium.
There is excess equilibrium
There is excess supply
There is excess demand
There is equilibrium
If the price is a market is fixed by the government below equilibrium.
A price ceiling is
The minimum price that consumers are willing to pay for a good
The differences between the initial equilibrium price the equilibrium price after a decrease in supply
A maximum price usually set by government ,that sellers may change for a good
A minimum price usually set by government that sellers must charge for a good
Economists use the term 'Black markets' for situations where
Goods are sold at prices above legal or official prices
Illegal substances are sold
Transactions are not recorded in the GDP figures
Buyers and /or sellers are not paying taxes as they should
Merit goods are
Not provided in the free market economy
Under provided in the free market economy
Over provided in the free market economy
Provided free
Tax incidence is the
Behaviour of shifting the tax to another party
Structure of the tax
Ultimate distribution of a tax's burden
Measure of the impact the tax has on employment and output
