Intro to Economics
Demand
Supply
Equilibrium
Elasticity
100
Ceteris Paribus
What is...
all other things being equal/constant
100
the law of demand
What is the relationship that as prices go up the quantity demanded goes down.
100
Supply
The quantity that firms offer at a given price
double points if also includes: during a given time period.
100
The price where quantity demanded is equal to quantity supplied
What is the equilibrium price?
100
The formula for YED
What is:
YED = (%ΔQd)/(%ΔY)
200
The four factors of production
Land, Labor, Capital and Entrepreneurship
200
4 of the determinants of demand
What are changes in...
price of a related good (Substitute/Compliment)
Income Level
Tastes and preferences
Future price expectations
Number of Consumers (Population
200
A diagram showing the impact on supply when the cost of an input good decreases
What is 
200
The difference between what consumers are willing to pay for a good/service and how much they actually pay.
What is consumer surplus?
200
The PED of a medicine if a 50% increase in price yields a 10% decrease in quantity demanded.
What is -0.2
Half credit if no negative
300
the loss of potential gain from the next best choice when one alternative is chosen.
What is opportunity cost?
300
A diagram showing supply and demand for spiderman toys, after marvel releases the next avengers move.
What is...
300
4 determinants of supply
What are...
• Changes in costs of factors of production (FOPs)
• Prices of related goods (in the cases of joint and
competitive supply)
• Indirect taxes and subsidies
• Future price expectations
• Changes in technology
• Number of firms
300
When quantity supplied is less that quantity demanded.
What is a shortage?
300
What is perfectly inelastic supply?
(Full points for perfectly inelastic demand)
400
4 of the Economics key concepts
scarcity, choice,
efficiency, equity, economic well-being, sustainability,
change, interdependence, intervention
400
Causes movement along the demand curve.
What is a change in the price of a good/service?
400
An increase in the cost of input goods
What causes a contraction/reduction in the supply curve?
400
750 in this image:
What is producer surplus?
400
A good that an increase in income results in a decrease in the quantity purchased.
What are inferior goods?
500
The opportunity cost to Crusoe of catching 1 fish.
What are 2 coconuts.
500
The impact an increase in the price of french fries will have on the demand for hamburgers.
What is decrease demand.
500
The impact of an increase in price of wood on the supply for wood.
What is no change in supply?
(or movement up the curve, or increase in quantity supplied)
500
This occurs when the price is higher than the equilibrium price.
What is a surplus?
500
4 of determinants of PES
What are...
time, mobility of factors of production, unused capacity, ability to store, rate at which costs increase