Demand
This describes the slope of a demand curve.
What is negative?
It is what causes the law of supply to be true.
What is profit motive?
Another name for the equilibrium.
What is the “happy place”?
It causes an increase in both equilibrium price and quantity.
What is an increase in demand?
The value of the next best alternative given up when a choice is made.
What is opportunity cost?
The best way to state the Law of Demand.
What is as price goes up, quantity demanded goes down?
It is why all supply curves become vertical beyond a certain point.
What happens when a market reaches capacity?
Quantity demanded is greater than quantity supplied.
What is a shortage?
Rent controls are an example of this.
What is a price ceiling?
Created by voluntary exchange between buyers and sellers.
What is the market-clearing price?
The Law of Diminishing Marginal Utility
Why is the demand curve curved?
The two primary causes of a shift in the Supply Curve.
What are change in number of sellers and change in the cost of production?
A government imposed price that is above the market price.
What is a price floor?
The effect on the price of pizza from a decrease in the price of tomatoes.
What is a decrease in price?
Another name for market forces that create equilibrium prices.
What is the “Invisible Hand”?
Pre-owned cars, secondhand clothing, Ramen Noodles.
What are inferior goods?
The effects of a decrease in supply.
What is an increase in PE and a decrease in QE?
Producers will put products on sale when this occurs.
What is a surplus?
What would result from the Hamburger Lover’s Association’s request for a law requiring producers to lower the price of beef.
What is a shortage of beef?
Where Mrs. Wetzig went to college.
What is the University of Texas at Austin?
The five determinants of demand.
What are consumer tastes, income, price of related goods, future price expectations and number of buyers?
The effect of an increase in the price of pizzas on the supply of pizzas.
What is no change in supply?
The market-clearing price.
What is the price where quantity demanded equals quantity supplied?
It is how consumer’s signal that they want more of a product.
What is bid-up prices?
The reason that we have economic systems.
What is scarcity?