The measure of how much consumers are able and willing to buy at different possible prices in a given period of time.
Demand
100
The quantities of a good or service a producer is willing and able to sell at different possible prices
Supply
100
The quantity demanded is the same as the quantity supplied
Market Equilibrium
100
Market Clearing prices are important in a free enterprise economy because
They help ration available goods, provide incentives for people to product goods and provide services, provide information about producer costs and consumer wants
100
Quantities of a particular good or service consumers are willing and able to buy at different prices at a particular time
Demand
200
The Demand Curve shows an inverse relationship between
Price and Quantity demanded
200
If the price of a product falls, producers are likely to
Decrease production
200
A shortage of a product occurs when
The products price falls below its market clearing level
200
What would happen to the market clearing price if there was an increase in supply, but no change in demand
the market clearing price would decrease
200
A social science that studies how people, acting individually and in groups, decide to use resources to satisfy their wants
Economics
300
If a product has few, if any, substitutes the product is said to be
Price inelastic
300
What action would producers take if production cost increased
Decrease production
300
The prices set by supply and demand are measures of
The scarcity of goods and services
300
If the government imposed a price ceiling on gasoline, what would happen to the demand of gasoline?
Demand would Increase
300
An inverse relationship between the quantity demanded and the price of a product
Law of Demand
400
If consumers switch to substitutes when the price of a product increases the product is said to be
Elastic
400
Why do producers usually sell more at higher prices than at lower prices?
Their marginal costs usually rise as they increase production
400
Demand and Supply schedules are based on decisions made by
Consumers and producers
400
Why does the cost of Valentine's Day candy decrease the day after Valentine's Day?
Sellers produced a surplus of Candy
Demand decreased
400
A positive relationship between the quantity supplied and the price of the product
Law of Supply
500
An increase in demand would cause the demand curve to shift to the
Right
500
What does it mean to produce at a constant marginal cost?
Total cost rises by the same amount every time it increases production by one unit.
500
During one month, the price of a product rose 25%, this most likely occurred because of an increase in
consumer demand
500
When Demand and supply for a product are equal, what happens to the product's market?
it clears
500
The additional cost of increasing one unit of production