In many cases, it is reasonable to refer to the ________________ as the price.

a.- supply curve

b.- demand curve

c.- opportunity cost

The nature of demand indicates that as the price of a good increases:

a.- buyers desire to purchase less of it.

b.- more of it is produced.

c.- more of it is desired.

d.- suppliers wish to sell less of it.

If the Consumer Protection Division of Washington State decides to decrease the price of gallon of milk from $4 to $3, this would provoke ______________, which is known as_____________, and where market forces will drive the quantity supplied to ________ and the quantity demanded to ________.

a.- an excess in demand; price ceiling; increases; decrease.

b.- an excess in demand; price floor; decrease; increase.

c.- an excess in supply; price ceiling; increases; decrease.

d.- an excess in supply; price floor; decreases; increase.