Supply
Demand
Factors
Supply and Demand
Example-o-rama
100
Supply comes primarily from what group
What are firms/companies?
100
Demand comes primarily from this group
Who are consumers?
100
Popularity of Garden Gnomes Soars
Consumer Tastes -Demand
100

The level of production that generates just enough revenue to cover its total operating costs. 

What is the break-even point?

100

hot dog and buns

complements

200
The Law of Supply states that as prices increase, supply does this
What is increase?
200
The law of demand states that as prices decrease, demand does this
What is increase?
200
Prices of Bananas skyrockets - Affect on production of Strawberry Banana Smoothies
Input Costs
200

Only a change in price can cause a change in the quantity demanded. This change happens along this curve.  

What is the demand curve?

200

iPhones and Android Phones

What are substitutes?

300

When the supply curve shifts to the right, what effect does it have on production costs?

goes down

300
When a large increase in price causes a small increase in supply
What is inelastic demand?
300

Zombie apocalypse wipes out 50% of US

Market Size

300

Give one example of the substitution effect on demand.

replace one good with a less costly good. 

300

The extra output due to the addition of one more unit of input 

What is marginal product 

400
Give an example of a government action that can cause a shift in supply
Excise tax, subsidy
400
Fads, Trends, Peer Pressure and Personal Opinions altering demand are all examples of this
What is consumer tastes?
400

Taylor Swift decides to come out own brand of hand-knitted sweaters - Knitty Swift 

# of Producers

400

A chart that helps a business determine at what prices demand will increase at any given time 

What is a demand schedule?

400

What is the largest variable cost for most businesses? 

What is labor? 

500

Level of production where marginal cost is equal to marginal revenue. 

What is profit-maximizing quantity or output?

500
A product that must be used in conjunction with another product
What is a complement?
500
Minimum wage gets raised from 8 bucks to $150/hour
Income
500
What kind of cost is a rent and taxes? 

What is fixed cost?

500

At what stage do diminishing returns happen? 

What is stage II

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