Markets
The relationship between households and businesses.
Circular Flow Model
Line that slopes upward.
Supply Curve
Line that slopes downward.
Demand curve
What to write on the Y-axis label
Price
Something that limits resources.
Scarcity / Economic Problem
Question all firms must ask before producing.
What to Produce
As price rises, what happens to supply?
Increases
As price falls, demand?
Increases?
What to write on the X-axis label.
Quantity
Study of how we choose.
Economics
Market where buyers and sellers meet.
Product Market
Decrease in supply causes price to?
Rise
Intersection of supply and demand.
Equilibrium Point
Point where S and D meet.
Equilibrium
Human resource used to produce.
Labour
What determines prices in markets?
Supply and Demand
Rightward shift means this.
Increase in Supply
Label for demand curve
D or D1
Marked price at equilibrium.
Pe
Business owner or innovator.
Entrepreneur
Business aiming for luxury market.
Designer Brand
Label for supply curve.
S or S1
Demand increase shifts curve which way?
Right
Marked quantity at equilibrium.
Qe
Machine or tool used
Capital