Definitions
Supply
Demand
Gov. Regulations
Random
100
The consumer and producer loss.
What is dead weight loss?
100
Define supply.
What is the amount producers produce?
100
Define demand.
What is the amount of a good or service we demand at a given price?
100
This results in an increase in price and a decrease in quantity supplied, a shift in the supply line left, a bigger dead weight loss, a decrease in both producer and consumer surplus. It is used to provide money for the government.
What is a tax?
100
DAILY DOUBLE https://www.youtube.com/watch?v=22kxKW5IqsQ
What is because elastic items are wants and inelastic items are needs?
200
As price goes up, quantity supplied increases and vice versa.
What is the law of supply?
200
The number of companies selling cereal increases. What is the effect this has on the supply curve?
What is the supply curve will increase and shift right?
200
Differentiate between a change in D and a change in Qd. (Remember: List reasons too/determinants)
What is a change in D means the entire line has shifted due to # of buyers, taste/preference, related goods, expectations, or income, and a change in Qd is a shift along the line and means the price has changed?
200
This provides companies with money from the government and decreases the price, increases the quantity demanded, shifts the supply line right, increases the consumer and producer surplus, and decreases the dead weight loss.
What is a subsidy?
200
This is unlimited wants and needs with limited resources.
What is scarcity?
300
As price goes up, the quantity demanded decreases and vice versa.
What is the law of demand?
300
Differentiate between the a change in S and a change in Qs. (Remember: List reasons too/include determinants)
What is a change in S is when the entire line shifts due to a change in the # of sellers, technology, government taxes or subsidies, expectations, cost of inputs, and O.C. of alternatives, and Qs is a shift along the line due to a change in price?
300
The number of buyers decreases. How will this affect the demand curve?
What is the demand curve will decrease and shift left?
300
This taxes goods being exported and imported. It promotes domestic growth, decreases the consumer surplus, increases the producer surplus, increases the price of imported goods, and raises the the demand for domestic items.
What is a tariff?
300
These four things are key in production and can be found on the circular motion diagram.
What are capital goods, human/labor, entrepreneurship, and natural goods?
400
This benefits the consumer.
What is consumer surplus?
400
The minimum wage increases by one dollar. How will this affect the price and quantity supplied at equilibrium?
What is the price will rise and the quantity supplied will decrease?
400
Taste/preference change. The graph was at equilibrium. How will this affect the consumer surplus, producer surplus, and dead weight loss?
What is the consumer surplus and producer surplus will both decrease and the dead weight loss will increase?
400
This limits the number of how much of one good can enter the country. This increases the price, increases the quantity supplied domestically, increases consumer surplus, decreases producer surplus, and increases dead weight loss.
What is a quota?
400
DAILY DOUBLE https://www.youtube.com/watch?v=JDjQp3_3nBs
What is blue is the consumer surplus and red is the producer surplus?
500
This benefits the producer.
What is producer surplus?
500
The government increases taxes. The graph was at equilibrium. How will this affect the consumer surplus, producer surplus, and dead weight loss?
What is both the consumer and producer surplus will decrease and dead weight loss will increase?
500
Income increases. How will this affect the price and quantity demanded at equilibrium?
What is both price and quantity demanded will increase?
500
These two things put a cap on the price from shifting too far up or down from equilibrium. One results in shortages and the other results in a surplus.
What are price ceiling and price floor?
500
These are the 3 reasons the demand curve slopes down.
What are substitution effect, income effect, and diminishing marginal utility?
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