1. What determines the level of prices in a competitive market?
2. When the price is above the equilibrium, explain how market forces move the market price to equilibrium. Do the same when the price is below the equilibrium.
3. Describe five factors that cause demand of a good to change. (Hint: Shift in demand curve)
4. Describe four factors that cause the supply of a good to change. (Hint: Shift in supply curve).
5. Suppose the government imposed price controls on apartment rents? (The price a landlord could charge per month to a renter) What would happen to the supply of apartments if the price was set below market equilibrium?