Vocabulary
What is a Consumer?
People who buy goods and services
What is a Producer?
people who provide goods and services
What is a Demand Curve?
demand schedule shown using a graph
Which of the five shifters of supply is affected by "the number of sellers willing and able to sell a good"?
Number of Producers/Sellers
What is an Inverse Relationship?
when one goes up the other goes down
What is a command economy?
An economic system where the government sets the price on goods and services.
What is a supply curve?
supply schedule shown using a graph
What is a substitute good?
Goods/services that can be used instead of other goods
What is the Law of Diminishing Marginal Utility?
As you continue to consume a certain product, that product will eventually get old or will no longer satisfy you
What is a Supply Schedule?
a list that shows the quantity supplied at all prices
Which way does the demand curve slope (up or down?)
Down
When a Person's Income increases, does the demand curve shift to the left or to the right?
Right
Define Non-Price Determinants of Demand.
cause a shift in the entire demand curve and demand schedule
Define Non-Price Determinants of Supply.
factors that cause shifts in supply curve because the entire supply schedule changes
Which way does the supply curve slope (up or down?)
Up
What is one example of a Government Action? (supply curve shifter)
taxes or subsidies
List all five shifters of demand.
1. Tastes/Preferences 2. Person's Income 3. Market Size 4. Price of complementary goods/substitutes 5. Future Expectations
List all five shifters of supply.
1. Price of Resources 2. Number of Producers/Sellers
3. Technology 4. Government Actions 5. Future Expectations
Describe where the Market Equilibrium Point is on a graph with a supply and a demand curve.
At the point where the supply and demand curve cross
What is one shifter that can be either a demand curve or a supply curve shifter?
Future Expectations