Demand
Inverse relationship between P and Q
Law of Demand
I never shift supply
Price
. Hundreds of firms compete against one another to sell tomatoes in a large regional market.
Perfect Competition
George and Jacob want to start a lawn care business. They have agreed share all profits and losses evenly between them. What type of business should they set up?
Partnership
The point where quantity supplied and quantity demand meet on the graph is called
Equilibrium
I never shift Demand... only QD
Price
A government payment to a business that offsets the cost of production is called a
Subsidy
Two new burger fast food restaurants open to compete with the many other franchised restaurants in town
Monopolistic Competition
Bob wants to coffee shop in his hometown. He plans to open the business on the town square, and manager the establishment by himself. What type of business should Bob set up
Sole Proprietorship
This occurs when quantity supplied is greater than quantity demanded:
Surplus
Income increases and Demand Decreases
Inferior Good
The government places a tax on the production of cigarettes. This action would cause the following change:
Decrease in Supply
Sofa Mart and Chairtopia together control 80% of the couch market in the country.
Oligopoly
In which type of business organization do shareholders have little say in the day-to-day management of the business?
Corporation
7. A price control set by the government that sets a legal maximum price on a good or service in a market is called a
Price Ceiling
Number of Consumers decrease.
Demand Decreases
. An increase in innovative technology would cause the following change
Increase in Supply
A local company wins a bid to be the sole phone and internet service provider in the region.
Monopoly
Which type of business organization has the advantage of having the financial capital to hire specialists, but the disadvantages of increased regulation and double taxation?
Corporarations
The goal for any business
Maximize Profit
increase in the price of milk results in a decrease in the demand for cereal.
Complements
What will happen in the market when a tax is placed on producers? Specifically, Market Price and Quantity
Supply will decrease, resulting in a decrease in quantity and an increase in price.
Rank the market structures in order from MOST to LEAST competitive:
Perfect Competition – Monopolistic Competition – Oligopoly – Monopoly
Which type of business organization has the advantage of having being your own boss, but the disadvantage of unlimited personal liability?
Sole Proprietorship
When a consumer’s need to a particular product is not urgent, demand for that product tends to be
Elastic