The Law
The law of demand must be WHAT like a budget.
Balanced
When the price is higher than the equilibrium cost, does it create a surplus or a shortage in supply?
Surplus
This happens to supply when product prices drops below production costs.
Supplier preference is also known as?
Supply
When a demand for a product increases, what happens to the cost of the item?
The cost increases as well.
When the price is lower than the equilibrium cost, does it create a surplus or a shortage in supply?
Shortage
Consumers income, preferences, and willingness to substitute one product for another will have a great impact on what?
Demand
Consumer preference is also known as?
Demand
Higher prices will increase supply. Is this the Law of Demand or the Law of Supply?
The Law of Supply
The cost of gasoline rises from $ 1.80 per gallon to $ 2.00 per gallon. What happen to the supply of gasoline?
It increases
New technology in producing cars has allowed manufactures to ability to make cars cheaper. According to the law of supply and demand, what will happen to market?
Demand will increase because the cost of the car will be cheaper.
Food, water, and items that have a consistent demand are also known as?
Basic Necessities
The theory that explains the law of interaction between the seller and the buyer is known as what?
Law of supply and demand
Mike goes on sale at you local grocery store. What happens to the supply?
Goes down
The use of product or services by target customers compared to the total market is known as what?
Hint: It measures 2 factors
Market penetration
Production capacity are influenced by available labor, capital, natural resources, and technological advancements, They are also known as?
Factors
Daily Double X 2 Points
Also known as as the market clearing price is when demand matches supply that is acceptable to buyer and seller is called?
Equilibrium price
The equilibrium price helps to do what to supply and demand?
Balances it
This refers to the maximum output that an economy can produce given its current recourses and technology.
Productive capacity
When a name brand item known for its quality and reliability than a cheaper brand, a department store places the name brand items in the center of the shelves and giving them more space than the cheaper brand. This is also known as?
Market penetration