Market Equilibrium
The point where supply and demand curves intersect, representing a stable price and quantity.
market equilibrium
Prices act as signals communicating information about ____ and ____ in the market.
scarcity and abundance (or supply and demand)
Costs that do not change with the level of output.
fixed costs
A simplified representation of economic behavior and predictions.
economic model
A situation after a typhoon where limited resources necessitate controlled distribution.
rationing
A situation where the quantity supplied exceeds the quantity demanded at a given price.
surplus
A major function of price is to distribute resources to those with the ____ to buy them.
buying power (or ability to pay)
Costs that change directly with changes in output.
variable costs
This model helps analyze how buyers and sellers interact to reach an agreeable price.
supply and demand model
A potential problem with rationing systems following a typhoon disaster.
unfairness (or corruption, high administrative costs, logistical challenges, diminished incentives)
A situation where the quantity demanded exceeds the quantity supplied at a given price.
shortage
The advantage of using prices to allocate resources is that it's a relatively ____ and ____ system.
neutral and flexible
The additional cost of producing one more unit of output.
marginal cost
A situation in which no one has any desire to change what they are doing (related to equilibrium).
Nash equilibrium
What is the advantage of using prices to allocate resources in the aftermath of a typhoon?
efficiency and flexibility (or signals scarcity, encourages production)
The price at which the quantity supplied equals the quantity demanded.
equilibrium price
A system where a central authority decides everyone's "fair share" of resources.
rationing?
The total output a firm produces.
total product
This concept explains why economic models are valuable.
prediction (or analysis)
What would a government likely need to consider for efficient resource allocation after a typhoon?
population's needs, damaged infrastructure, the availability of resources, equitable distribution, or prioritizing essential goods and services
A graphical representation showing the relationship between price and quantity demanded and supplied.
supply and demand graph (or curve)
This describes the value of a product, often determined by supply and demand.
price
This describes the relationship between inputs and outputs of a firm.
production function
Economists use this to analyze how the interaction of buyers and sellers results in a price that is agreeable to all.
economic model (or supply and demand model)
Describe a scenario in the aftermath of a July 2025 typhoon requiring resource rationing. What were some problems encountered?
(Open-ended; post-typhoon resource scarcity, including fuel, food, water, shelter, medical supplies. Examples of problems could include inequitable distribution, hoarding, black markets, logistical difficulties, and corruption.)