Supply
What is the law of supply?
The higher the price, the more the supplier is able and willing to supply.
What is a demand schedule?
A chart showing how much someone/people demand of a product at a particular price point.
A good or service's monetary value is its what?
Price
A business owned by 1 person is known as what?
Sole prioprietorship
How are prices set in a perfectly competitive market?
Supply and demand
How do we change the quantity supplied?
Change the price
How do we change the quantity demanded?
A change in the price
When does a surplus occur?
When quantity supplied outweighs the quantity demanded?
Why do corporations tend to outlast sole proprietorships and partnerships?
CEOs come and go, even as some die.
What is the difference between perfect competition and monopolistic competition?
Firms in perfectly competitive markets sell identical products, while firms in monopolistically competitive markets sell similar products.
What entities buy on the resource or factor market?
Businesses
What happens to the demand for a substitute good when a product's price goes up?
The demand for the substitute good goes up.
What do we have when quantity demanded outweighs the quantity supplied?
Which type of business is usually required to pay corporate taxes?
Corporations
What is an oligopoly?
A market structure in which a few sellers own all or most of the market share.
How can taxes shift supply?
Shifts supply to the left as there is a decrease in supply.
What is a complimentary good?
A good that is usually bought alongside another good.
What is the most common example of a price floor?
Minimum wage
What type of labor demands advanced skills and training?
Professional
What are barriers to entry?
High startup costs that make it harder to enter the market for a particular good or service.
What is elasticity?
The degree to which a change in price affects the quantity supplied.
Describe the income effect.
A change in quantity demanded can occur because a consumer feels "richer" when buying things at a lower price.
What is a price ceiling?
Maximum price set by the government.
What type of business is owned by 2 or more people?
Partnerships
What is a natural monopoly?
When a monopoly occurs because it makes more economical or practical sense.