Supply
Supply is from the perspective of the ___________
Producer or Supplier
Demand is from the perspective of the ____________
Comsumer or buyer
Where is the point where the demand curve and supply curve cross?
Equilibrium
What is a complement to cereal?
Milk
What is the equation to calculate consumer surplus?
The price you are willing to pay - the price
This is the main goal of a supplier.
To make money or maximize profits
This is the largest factor in determining demand.
Price
What do stores do that have excess supply?
Have a sale or discount
When prices rise, people feel poorer. This is termed the ______________ effect.
Income
On a supply and demand curve is a price floor above or below equilibrium price?
Above
A decrease in the supply curve means the curve moves closer to the __________.
What is y-axis (leftward shift)?
The demand curve increases in quantity as price _______
Decreases
What are four of the six factors shift demand ?
Income
Market Size
Consumer Tastes
Consumer Expectations
Substitute Goods
Complementary Goods
What is the term for a table or graph that shows the relationship between the price of a product and the quantity supplied by producers?
What is the supply curve?
On a supply and demand curve, where is a price ceiling in relation to equilibrium price?
below
List four of the 6 reasons for a shift in supply
Input Costs
Labor Productivity
Technology
Government Action
Producer Expectations
Number of Producers
A product that must be used in conjunction with another product, like mustard on a hot dog.
What is a compliment?
What do stores do when they have excess demand?
What is increase the price?
What is the term for when consumers will keep buying a product even if the price goes up ?
inelastic
Why is gas (think gas station) inelastic?
No substitutes
A movement along the curve is referred to as a _______ in _______ supplied.
Change, Quantity
Another term for a change in demand is a ________ of the demand curve.
Shift
How can equilibrium be achieved if the Gov puts a rent ceiling on housing?
You can create a black market .
How can a producer figure out equilibrium price?
Trial and Error
According to Adam Smith, what should determine price?
The Market or invisible hand