Quantity Demanded
These are demanders in the product market who spend money earned from income made in the factor market.
Households
List three examples of complements
Eggs & Bacon
Pens & Pencils
Peanut butter & Jelly
A perfect definition of SUPPLY.
The various quantities of goods and services that producers are WILLING and ABLE to produce at different price levels.
When the supply curve intersects the demand curve.
Market Equilibrium (Price & Quantity)
The result of an increase in demand.
Price Increases
Quantity Increases
What a Demand Curve will show us.
It shows the relationship between quantity demanded and price for a related good or service
The 5 non-price shifters of Demand.
changes consumer income, price of related goods, consumer tastes, consumer expectations of a price change, number of buyers
What Qs shows.
The amount that producers are willing and able to sell at a specific price
When Market Equilibrium moves into Market Disequilibrium where the price is too high.
surplus (Qs>Qd); the seller will notice that not many people are purchasing the good and lower prices.
The result of a decrease in supply.
Price Increases
Quantity Decreases
What has to change for there to be movement along the curve. (Hint: The only thing that won't shift the curve.)
Price
List all the non-price factors for Supply
changes the cost of inputs, number of sellers, opportunity cost of alternative production, technology, producer expectations (profit), government policies or regulations (taxes and subsidies)
What the supply curve shows us.
It shows the relationship between quantity supplied and price for a specific good or service.
In disequilibrium where Qd=20 and Qs=10 as the result of a government price control.
We can see the decisions of all the buyers and sellers in a particular market, also the market price of that good or service
Market: HotDogs (Inferior)
The result of incomes in American decreasing.
Price Increases
Quantity Increases
(Demand Increase, Income)
The Law of Demand? (relationship)
INVERSE RELATIONSHIP BETWEEN $ and Q
When P increases QD decreases
When P decreases QD increases
How does the price of a substitute good affect the demand curve?
An increase in the price of one good increases the demand for its substitute
The Law of Supply.
DIRECT (POSITIVE) RELATIONSHIP
When Price increases Qs increases
When Price decreases Qs decreases
The consumer surplus if the price of a coat is $20 and the buyer's MAX is $15.
-$5
Market: Hot Dogs (Inferior)
The result of the price of mustard falling.
Price Increases
Quantity Increases
(Demand Increase, PoRG)
The definition of a Demand Schedule.
In a specific market, it shows the quantity
demanded for all consumers in that market at
specific prices
The result of an excise tax.
it will decrease the supply of a good since they add to the cost of input for sellers
What a Supply Schedule demonstrates.
In a specific market, it shows the quantity supplied for all producers in that market at specific prices.
What drives the price down and quality high--while also keeping a business profitable.
Competition In The Market
Market: Hot Dogs
The result in the market when the cost of producing hot dogs increases when the supply of pig lips (a key ingredient in wieners) decreases.
Price Increases
Quantity Decreases
(Supply Decreases, Price/Availability of Resources)