Supply
Demand
6.1 Vocabulary
6.2 Vocabulary
6.3 Vocabulary
100
It moves along the graph.
How is the graph affected due to a change in quantity supplied?
100
more
The law of demand states that _______ will be purchased at low prices than at high ones
100
Prices
________ help the economy run smoothly by providing a good way to allocate resources.
100
Unsold product on store shelves or in warehouses
What is surplus?
100
Price
What is the monetary value of a product as established by supply and demand?
200
Cost of resources, Productivity, Technology, Taxes/Subsidies, Government Regulations, Number of sellers
Name a factor that affects change in supply.
200
Entire graph shifts left or right
How does change in demand graph shift?
200
Prices are familiar and easy to understand, prices have no cost of administration
Give one reason why prices are a good way to allocate resources.
200
shortage
what exists when supply does not meet demand?
200
Highest
Price ceiling is the __________ legal price that can be charged for a product.
300
The entire graph shifts left or right.
How is the graph affected as a result of change in supply?
300
Inverse relationship
What relationship describes the downwards slope graph between price of an item and the quantity demanded
300
Rationing
Name of way of allocating resources other than prices.
300
competitive
A _______ market is one that "runs itself," finding its own equilibrium
300
Nonrecourse loan
An agricultural loan that carries no penalty or further obligation if it is not paid.
400
a price change
What factor leads to a change in quantity supplied?
400
What two things effect change in quantity demanded?
What is income effect and substitution effect
400
Difficult to allocate in fair way, Administrative cost of rationing, Negative incentive to produce
What is one problem with rationing?
400
change in supply, change in demand, change in supply and demand
Name one thing that can cause a change in price
400
Deficiency payment
If you are making a cash payment making up the difference between the market price and the target price, what kind of payment are you making?
500
There is a change in supply.
The government places new regulations on car production. What changes as a result?
500
It will shift left
A business sells video games. What will happen to the graph if another business releases a new, better video game?
500
rebate
When SUV sales dropped, manufacturers offered a _________ or "partial refund" to those who purchased SUVs.
500
equilibrium price
When a business reviews the last market period, they find there was no surpluses or shortages. What has been reached?
500
Define "target price"
The price floor for agricultural products set by the government to stabilize farm income.
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