elasticity
Demand/Supply
Price aint right
Roles of Price
Government
100
a measure of the degree to which the quantity demanded or supplied of a good or service changes in response to a change in price
What is elasticity
100
the point at which the quantity of a product demanded by consumers in a market equals the quantity supplied by producers
What is market equilibrium
100
a situation that exists when the quantity of a product demanded by consumers does not equal the quantity supplied
What is disequilibrium
100
Prices are like messengers conveying news
What is Prices Convey Information to Consumers and Producers
100
government-imposed limits on the prices that producers may charge in the market
What is price controls
200
a measure of the sensitivity of consumers to a change in price
What is elasticity of demand
200
the price at which the quantity of a product demanded by consumers equals the quantity supplied by producers
What is equilibrium price
200
Result of disequilibrium
What is surplus, shortage
200
Economic Principle that matters most
What is Prices Create Incentives to Work and Produce (incentives matter)
200
a minimum price set by the government to prevent prices from going too low]
What is price floor
300
not responsive, or only slightly responsive, to a change in price, applied to either supply or demand; the supply or demand of a good or service is said to be inelastic when the quantity supplied or demanded does not change significantly with a change in price
What is inelastic
300
the price at which the quantity demanded of a product equals the quantity supplied; another term for equilibrium price
What is market-clearing price
300
3 questions used to analyze the Effect of a Change on Equilibrium Price
What is Does the event affect demand, supply, or both? Does the event shift the demand or supply curve to the right or to the left? What are the new equilibrium price and quantity, and how have they changed as a result of the event?
300
when major events such as wars and natural disasters interfere with the production or movement of goods, wreaking havoc on supply
What is Prices Allow Markets to Respond to Changing Conditions
300
A maximum price set by the government to prevent prices from going too high
What is price ceiling
400
Factors that Influence Elasticity of Demand
What is Availability of substitutes, Price relative to income, Necessities versus luxuries, Time needed to adjust to a price change
400
the quantity of a good or service demanded by consumers and supplied by producers when the market is in equilibrium
What is equilibrium quantity
400
2 economic systems makes up the USA mixed economy
What are command and market
400
Perhaps the most important role of price in a market-based economy
What is Prices Allocate Scarce Resources Efficiently
400
the controlled distribution of a limited supply of a good or service
What is rationing
500
Factors that Influence Elasticity of Supply
What are Availability of inputs, Mobility of inputs, Storage capacity, Time needed to adjust to a price change
500
the price a willing consumer pays to a willing producer for a good or service
What is market price
500
Minimum wage in Chicago in Summer of 2015
What is 10.10
500
Affordable care act
What is ObamaCare
500
an illegal market in which goods are traded at prices or in quantities higher than those set by law]
What is black market
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