Supply
the willingness and ability of producers to offer a good for sale
SUPPLY
A table that shows how much of a good ALL consumers are willing to buy is called:
DEMAND SCHEDULE
When a change in price, up or down, leads to little or no change in quantity, this is called:
INELASTIC
If prices increase, quantity supplied will
Increase... Direct Relationship
A government system for allocating goods using criteria other than price
RATIONING
A natural disaster could shift the
supply curve to the left, decreasing supply
If demand is said to be not perfectly vertical, but close to a vertical line, it is called...
RELATIVELY INELASTIC
The legal maximum price that sellers may charge for a product is called:
PRICE CEILING
the legal minimum that an employer must pay for an hour of work
MINIMUM WAGE
when the quantity of supply is greater than quantity demanded...
SURPLUS
A decrease in an inputs price will ____________ the quantity of the supply curve
do nothing to the quantity... but it will shift the curve to the right increasing supply
when the price of a good falls, consumers buy more of it
LAW OF DEMAND
A change in quantity demanded is due to a change in consumer expectations
False it is a change in price
Strawberry prices increase... What could happen to blueberries?
The demand for blueberries increases
The lowest or minimum price you can charge
Price Floor
producers sell more quantities at a higher price than at a lower price
LAW OF SUPPLY
The more you consume of anything, the less satisfaction you receive from a given good or service is referred to as the:
LAW OF DIMINISHING MARGINAL UTILITY
In a given time period, a person consumes more and more of a good and enjoys each additional unit less
Diminishing marginal utility
The highest or maximum you can charge
Price ceiling
Shifters of Supply?
1) technology 2) market size (# of producers) 3) Resources Prices 4) Taxes & Subsidies (government action) 5) future expectations
Shifters of Demand?
1) Consumer tastes/expectations 2) market size (# of consumers) 3) prices of related goods (substitutes/complements) 4) Income (normal and inferior goods) 5) future expectations
the change in the amount consumers buy because of income change
INCOME EFFECT
The equilibrium price is the price at which
the quantity demanded equals the quantity supplied
If price decreases, demand will
Do nothing... (demand does not depend on price it depends on shifters!)