Supply
The law of supply states this...
When the price is high, supply is high. When the price drops the supply drops
The law of demand states this...
As the price increases, the demand decreases
As the price decreases, the demand increases
This is another term for equilibrium.
Market-Clearing Price
What is the change in supply with pumpkins before Halloween.
Future
Products or services that are often used together
Price of Compliments
The economic definition of supply is...
The amount of goods or services sold at different prices
The economic definition of demand is
The amount of goods and services that people are willing and able to purchase at various prices
This is when the market price or quantity supplied is any where but equilibrium.
Disequilibrium
If a store has to lower the price of a certain to product to sell it, this is known as a...
Surplus
If the product is this, consumers will continue to buy it regardless of price. It is usually things that people NEED
Inelastic
If a product has this, an increase in price will result in a decrease of demand.
Elastic
Economic demand is seen through the eyes of the...
Consumers
This is when the quantity supplied is greater the quantity demanded. To get back to equilibrium, producers have to decrease their prices.
Surplus
TVs being produced in Mexico instead of the US is an example of which cause of the change of supply
Cost of Production
Mighty Taco recently increased the price of all products by 75%. What will most likely happen to the demand for Taco Bell.
The demand for Taco Bell will increase
Economic supply is seen through the eyes of this...
The producer/seller
This change in demand involves products or services that can take the place of another good or service
Price of Substitutes
This is a maximum price that can be legally charged for a good.
This is the minimum price set by the government, that must be paid for a good or service.
Price Ceiling and Price Floor
There is a hurricane in Florida, what will happen to the supply and oranges, and which change in supply is this called.
Decrease, Natural conditions
Baby formula is this type of good
Inelastic
Cigarettes vs vaping is an example of which cause of change in supply
Other profit opportunities
Buying leggings from Lululemon instead of Old Navy is an example of this change in demand.
Tastes and preferences
This change in equilibrium makes supply and demand both change.
Change in Price
On July 6th, 2024 what will happen to the supply of fireworks? Why?
Decrease, other profit opportunities
An early winter weather report indicates a long cold winter with heavy snow accumulations throughout the next few months. What will happen to the demand for snow blowers?
Demand will increase, due to expectations