demand
What causes the demand curve to shift to the right?
An increase in consumer income, population growth, improved consumer tastes, expectations of future price increases, or a price drop in complementary goods can cause the demand curve to shift to the right. This means more is demanded at every price.
What is an example of a real-life situation that could cause a supply shift?
A new farming technology that increases crop yields could shift the supply curve to the right, increasing the quantity supplied at every price.
What is the equilibrium price?
the point where the supply and demand curves intersect. (Use the graph’s axis to identify the price—e.g., "$5".)
what happens in a market when there is a surplus.
When there is a surplus, the quantity supplied is greater than the quantity demanded. This usually causes prices to drop as sellers compete to attract buyers and reduce excess inventory.
What is a shortage ?
when the quantity supplied can’t meet the demand.
A useful tool for determining an equilibrium quantity and equilibrium price is to create a _________
supply and demand curve.
What is a supply curve
•A ____ on a graph shows the quantity of a product or service a supplier is willing to sell at each price across a range of prices in a specified period of time.
If the price was set above equilibrium, what would result—shortage or surplus?
A surplus would occur because at that higher price, producers supply more than consumers are willing to buy.
What would sellers likely do if they notice a large surplus?
Sellers would likely lower prices to encourage more sales and reduce the excess inventory.
An example of shortage
At the start of the COVID-19 pandemic, demand for toilet paper skyrocketed as people began panic-buying.
what is A demand curve
A ________ is a curve on a graph that shows the quantities that consumers are willing to buy at each price across a range of prices in a specific period of time.
What causes the supply curve to shift to the left?
An increase in production costs, new taxes or regulations, a decrease in the number of sellers, or a natural disaster can shift the supply curve to the left—meaning less is supplied at every price.
What is equilibrium point
An equilibrium point is the ideal quantity at a given price that a customer is willing to pay so that they can meet demand and maximize profits.
What is surplus
when the quantity supplied is greater than the demand.
What would sellers likely do if they notice a large surplus?
Sellers would likely lower prices to encourage more sales and reduce the excess inventory.
what is Equilibrium quantity
Equilibrium quantity is the quantity at which the supply equals the demand.