Supply
Supply is from the perspectrive of the ______
Who are producers?
________ is the point where quantity demanded and quantity supplied intersect
What is equilibrium?
These are the 4 types of market structure from most competitive to the least.
What is perfect competition, monopolistic competition, oligopoly, and monopoly?
What consumers are willing AND able to buy
What is demand?
A change in the product's own price causes a movement along the demand curve
What is Change in Quantity Demanded?
As the price of a g/s increases, the quantity of g/s that suppliers offer will increase, and vice versa
What is the Law of Supply?
A theory that explains the interaction between the sellers of a resource and the buyers for that resource
What is the Law of Supply and Demand?
Obstacles that make it difficult for new businesses to enter a market and compete with existing businesses
What are barriers to entry?
States that at a higher price consumers will demand a lower quantity of a good
What is the Law of Demand?
Goods that consumers typically buy together. When demand of one changes, so does the other.
What are complementary goods?
Two ways government policy can intervene in supply
What are subsidies and taxes?
If the price is too low, it causes a ______.
If the price is too high, it causes a _______.
What is shortage and surplus?
The 2 main reasons why markets fail
What are externalities and public goods?
When prices rise your money has less buying power, so you buy less goods.
What is the Income Effect?
When quantity supplied is greater than the quantity demanded
What is a surplus?
Measures how responsive producers are to a change in price
What is supply elasticity?
An illegal market where goods are sold outside legal price or quantity limits
What is the black market?
1. price leadership
2. collusion
3. cartel information
How do firms limit competition?
Quantity demanded changes a lot
Consumers are very sensitive to price
often luxuries or goods with substitutes
What is Elastic demand?
Making a product or service different from competitors' offerings, even when the products are close substitutes
What is product differentiation?
The 6 factors that shift supply
What are cost of inputs, number of producers, natural disasters & international events, technology, producer expectations, and government policy?
A maximum price that can legally be charged.
Must be set below equilibrium
What is a price ceiling?
A few large, interdependent firms
Similar/differentiated products
High barriers to entry
Significant pricing power
ex: airlines
What is an oligopoly?
What are the 6 factors that shifts demand?
_______ are characterized as nonexcludable and nonrival in consumption
What are public goods?