Opolies and such
Producers
Consumers
Vocab.
About those curves
100
an exclusive possession of a market by a supplier of a product or a service for which there is no substitute
monopoly
100
The price action tells producers that a product is in demand and they should make more?
A high price
100
Price action tells consumers to buy now?
A low price
100
The point at which the demand for a product or service is equal to the supply of that product or service
equilibrium
100
Suppose the market for the magazine is in equilibrium. Some students insist on raising the cover price by $1 and printing the same quantity. What is likely to happen?
The demand for the magazine will go up.
200
an industry has many firms offering products that are similar but not identical
Monopolistic competition
200
Shifts to the left
A decrease in supply
200
An increase in demand
200
when quantity demanded is more than quantity supplied
shortage
200
Students are publishing an annual literary magazine at their school. How many copies should they print and what price should they charge for each copy?
200 copies at $4 each
300
a small number of producers working, either explicitly or tacitly, to restrict output and/or fix prices, in order to achieve above normal market returns.
oligopoly
300
A company that has a monopoly on providing a particular good or service
Imperfect Competition
300
to keep the goods from becoming too expensive
Why a government places price ceilings, such as rent control, on some “essential” goods?
300
a price ceiling placed on apartment rent
rent control
300
Supply?
increased
400
two competing businesses control the majority of the market sector for a particular product or service they provide
duopoly
400
copywrites and patents
encourage monopolies
400
It increases until quantity demanded equals quantity supplied.
What happens to the price of a good or service when a shortage of that good or service occurs?
400
a maximum price that can legally be charged for a good or service
price ceiling
400
How much pizza is supplied at the price of $4.00 per slice?
250
500
An economic side effect of a good or service; it generates benefits or costs to someone other than the person deciding how much to produce or consume.
Externality
500
To balance the supply of crops
The government’s goal in providing pay to farmers to get them to grow a certain crop?
500
What happens to the curve when price is the only change?
It stays the same
500
a system of allocating scarce goods and services using criteria other than price
rationing
500
What is the equilibrium price?
$3.00