Supply
Cost of production lowers. How does this affect supply?
Supply increases
Hair scrunchies go out of style. What happens to demand?
Demand decreases.
True or False: In a perfect competition, there are a lot of firms.
True
What is the tax you pay on your home?
Property tax
What percent of your income should go to savings?
20%
The government creates a new subsidy for Apple products. How does this affect supply?
Supply increases
The demand for peanut butter goes up causing the demand for jelly to go up. What are these products called?
Complimentary goods
What is one example of a monopolistic competition?
McDonalds
What is the tax you pay on tobacco and alcohol?
Excise tax
What percent of your income should go to fixed expenses?
50%
The government raises taxes on macaroni and cheese. How does this affect supply?
The demand for Coke goes down, and the demand for Pepsi goes up. What type of products are these?
Substitute goods
What is one example of an oligopoly?
Airline companies
What percent of your income goes to income tax?
25% (roughly)
What percent of your income should go to extras/fun?
30%
Supply of headphones has increased. What has happened to the new equilibrium price and quantity?
Quantity increases, price decreases
The demand for candles increases. What happens to the new equilibrium price and quantity?
The price goes up, the quantity goes up
What is an example of a monopoly?
Charter Spectrum/HECO on Oahu
Pay for schools and roads.
When should you start saving for retirement?
NOW!
What is the Law of Supply?
When the price of a good or service rises, the producer (the business) will want to make or produce more of the good.
What is the Law of Demand?
Consumers are willing to buy (demand) more of a good or service when prices go down.
List 3 characteristics of monopolistic competition.
Many firms, similar products but differentiated, have some control over prices
List two reasons why taxes are bad.
Corporations don't pay their fair share. The wealthy should be taxed more.
Transportation, student loan payments, food, electricity.