Supply
Demand
Production Chart
Supply and Demand
Example-o-rama
100
Supply comes primarily from what group
What are firms/companies?
100
Demand comes primarily from this group
Who are consumers?
100
Costs that do not change
What are Fixed Costs?
100
The point at which supply and demand meet
What is equilibrium?
100
Videogames
What are complements?
200
The Law of Supply states that as prices increase, supply does this
What is increase?
200
The law of demand states that as prices decrease, demand does this
What is increase?
200
The amount it costs to increase output by one
What is Marginal Cost?
200
Any point on a supply and demand curve that is not where the two curves meet is called this
What is disequilibrium?
200
iPhones and Android Phones
What are substitutes?
300
The increase in output from the addition of a single worker
What is the Marginal Product of Labor?
300
When a large increase in price causes a small increase in supply
What is inelastic demand?
300
Total Revenue is calculated in this manner
What is output times marginal revenue?
300
If a price ceiling is set below the equilibrium it results in this kind of disequilibrium
What is shortage?
300
Oranges
What is Inelastic Supply?
400
Give an example of a government action that can cause a shift in supply
What are Excise taxes / subsidies / regulation?
400
Fads, Trends, Peer Pressure and Personal Opinions altering demand are all examples of this
What is consumer tastes?
400
In order to remain profitable this must remain higher than Marginal Revenue
What is marginal cost?
400
A chart that helps an business determine at what prices demand will increase
What is a demand schedule?
400
Rent Control
What are Price Floors?
500
An excess of supply is typically created by government initiation of this
What is a Price Floor?
500
A product that must be used in conjunction with another product
What is a complement?
500
It is still advisable to continue operating an unprofitable business unless this becomes higher than your total revenue
What is Variable Costs?
500
This is the only way a company might deliberately move the demand curve, and thus change the equilibrium, without changing price
What is advertising?
500
Tylenol vs Generic Brands
What are Normal/Superior and Inferior goods?
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