Demand
Supply
Supply and Demand
Demand and Supply Curves
Miscellaneous
100
Demand is always from the perspective of whom?
The consumer
100
Supply is always from the perspective of whom?
The producer.
100
If suppliers expect price to increase in the future, what will happen to supply today?
it will decrease
100
This graph is known as...
This graph is known as...
Demand curve = the first graph
Supply curve = the second graph
100
When prices change, what does elasticity measure?
The sensitivity of quantity to a change in price.
200
What does the Law of Demand say?
When price increases, quantity demanded decreases. When price decreases, quantity demanded increases.
200
What does the Law of Supply say?
When price decreases, quantity supplied decreases. When price increases, quantity supplied increases.
200
The price at which buyers and sellers agree to make an exchange is known as...
The equilibrium price or equilbrium.
200
If the price moves from $4 to $10, how much does quantity demanded decrease by?
Quantity Demanded decreases by 50 units.
200
What is the formula for elasticity of supply?
change in Qs/Change in Price
300
"The willingness and ability of consumers to purchase a product at various prices within a specific time frame" is known as.....
Demand
300
If the your income goes down, what will happen to your demand for used clothing?
it will increase
300
What is a shortage?
Shortage is when quantity supplied is less than quantity demanded (too little).
300
Does this demand curve show a increase or decrease in demand?
Increase in demand
300
which of these goods probably has an elasticity of minus 0.44 - Insulin, Cigarettes, or Yachts?
Cigarettes
400
What is the difference between "demand" and "quantity demanded"?
Quantity demanded is the amount or quantity that is demanded by consumers at a specific price (P) set by the seller.
Demand is the willingness and ability of consumers to purchase a product at various prices within a specific time frame
400
What is the difference between "supply" and "quantity supplied"?
Quantity supplied is the amount (quantity) that producers are willing and able to sell (make available) at a specific price.
Supply is the amount (quantity) of a good or service that producers are willing and able to sell (make available) at various prices within a specific time frame
400
What is surplus?
Surplus is when quantity supplied is greater than quantity demanded (too much).
400
If the price for this product is set at $600, what happens to market equilibrium?
A surplus occurs.
400
What's more inelastic, milk or moyushuang?
milk
500
What are the 5 factors that can cause a change in demand?
1. Changes in Consumer Interests
2. Changes in Consumer Income
3. Changes in Consumer Expectations
4. Changes in Number of buyers
5. Changes in Price of Related Goods
500
What are the 5 factors that can cause a change in supply?
1. Change in Number of Sellers
2. Change in Technology
3. Change in Price of Inputs (Resources)
4. Taxes/Subsidies
5. Change in Producer Expectations of prices
500
What are the two types of regulations governments can put on prices? Define each.
Price ceilings is when the government puts a maximum price on the product.
Price floor is when the government puts a minimum price on the product.
500
Take a look at the demand and supply curve. If demand increases, what happens to the equilibrium price and equilibrium quantity.
Equilibrium Price Increases.
Equilibrium Quantity Increases.
500
What are 4 characteristics of an elastic good?
SPLAT