The fat of the land
What represents the aggregate of all amounts of a product or service available at all price levels ?
What is the supply curve?
This is the largest factor in determining demand.
What is price
What are the two axis of a market graph?
Price and quantity
If milk has a negative cross elasticity with cereal and a positive elasticity with orange juice, what is there relationship?
Milk and cereal- complements
Milk and orange juice- substitutes
What happens during Black Friday sales?
Increase in supply to bring the prices down and cause a higher quantity of equilibrium.
In what direction does the supply curve go?
From left to right, in a north-east direction , towards the up right corner.
What happens during summer electricity rates?
Demand increases so market price is raised.
This is the main goal of a supplier.
Maximize its profits
Elastic demand is very sensitive to what?
What is change in prices.
Which of the following is more inelastic? (apples-tomatoes or kiwi fruit)
Kiwi fruit- it takes longer than tomatoes to grow, but the areas it can be grown are far more scarce than apples.
According to supply, as quantity increases, price...
What is increases
How can supply and demand quantities be unbalanced?
When the government introduces a price floor or price ceiling.
When consumer demand increases to infinity with a price decrease and decreases to zero when the price increases. They most have perfect substitutes?
Perfectly elastic goods (vegetables , in Mexico tomatoes or corn, minimum wage workers, etc).
What is more elastic? clown shoes, a clown nose or a multicolor wig?
Elastic- the clown nose because it has far less uses (it is less needed).
What are the supply shifters?
Hint: Rotten
Resources
Other goods
Technology
Taxes
Expectations
Numbers of sellers
What are the demand shifters? Hint: TRIBE
Tastes
Related goods
Income
Buyers
Expectations
Under what circumstance is it possible to increase the quantity of equilibrium and keep the same price?
What is a double shift? (if both supply and demand shift)
Perfectly inelastic
Organize from 1 (most elastic) to 3 (most inelastic)
food, sleep and water.
Food (15-22 days)
Sleep (7-11 days)
Water (3-4 days)