Businesses
The person who takes a risk in producing goods and/or services in search of profit.
Entreprenuer
according to the law of supply, when the price of an item goes up then the supply of that item would mostly likely do this.
Go up, Increase
Price is determined mainly by these two factors that intersect.
Supply and Demand
A single producer with the most control over supply and price.
What is monopoly?
The area of economics that deals with decision making by small units (individuals and businesses).
Microeconomics
Advantages of this business type are that the owner is their own boss and gets to keep all the profits.
Sole Proprietorship
According to the law of demand, if the price for an item increases the demand will most likely do this.
decrease
The goal for any company is to set prices at this rate where there are no shortages and no surplus
equilibrium
A market structure with a large number of buyers and sellers, identical economic products, and little to no choice for price setting.
What is perfect competition?
In order to calculate this, you would need to determine total revenue against total expenditures.
profit
This type of business has independent owners using a licensed business model and paying royalties
Franchise
Coke and Pepsi, or butter and margarine are examples of this type of good
Substitute
With a SURPLUS the producer will have to do this to their prices
LOWER them in order to sell more or risk waste
The fast food industry is considered to be this type of market structure.
monopolistic competition
According to the Circular Flow model, MONEY always flows in in this direction in relation to the good/services/resources
opposite
Business entity that is usually owned by many and operates as a separate legal entity.
Corporation
Hotels and airplane flights are complementary goods. If hotel prices increase, then the demand for airplane flights would do this.
Decrease
The equilibrium price is set at $5 for a delicious small pizza. What would occur if the business decided to entice more customers to buy pizza by lowering their price to $4.00?
A shortage would occur and customers would be angry because they didn't get pizza at a good deal
High barriers to enter and collaborative pricing among a few producers describes this type of market.
oligopoly
According to circular flow, households provide these 2 things to businesses.
Profit(Payments) Revenue
AND
Labor (Human Resources)
Although the decision making process in this business type is inefficient, benefits include member discounts, voting input and no personal liabilities.
Cooperative
If there is a sudden increase in demand for a product because Joe Jonas tells everyone on TikTok how great it is, then the equilibrium price would do this AND the equilibrium quantity would do this. (2 answers)
increase and increase
When more companies join the market for a good or service, the supply curve will shift in this direction and ultimately cause this to happen to the price. (2 Answers)
Shift to the Right (increase in supply)
Lower prices (decrease equilibrium price)
This is what we measure market structures on . This also benefits consumers by keeping prices low and the quality and choice of goods and services high
Market Competition
You work at Dairy Queen, if the minimum wage were to increase by $3 by next year, what would likely happen to the supply of Dairy Queen Ice Cream? Explain why (shifters)
It would decrease because of the PRICE OF INPUTS increasing - more expensive to make so less will be made (they may end of firing some employees or not hiring new ones until demand for the product increased