Demand
This law states that as price goes up, quantity demanded goes down
What is the law of demand?
The supply curve usually slopes in this direction.
What is upward?
This is where supply and demand meet.
What is equilibrium?
Apple releases a new iPhone and everyone wants it. Demand rises. What happens to equilibrium price?
What is it rises?
The study of how people make choices with limited resources.
What is Economics?
A rise in income usually increases demand for this type of good.
What is a normal good?
When the price of a good rises, producers are willing to supply more. This is called the ______ of supply.
What is law?
When the market price is above equilibrium, this occurs.
What is surplus?
A drought destroys half the wheat crop. What happens to the supply curve for wheat?
What is it shifts left (decrease in supply)?
An increase in demand combined with a decrease in supply will cause this to happen to price.
What is Price Increases?
A decrease in demand shifts this curve to the left.
What is demand curve?
A new technology that lowers production costs would shift the supply curve in this direction.
What is right? (Increase in supply)
When the market price is below equilibrium, this occurs.
What is shortage?
Gas prices rise, so more people carpool. What happens to the demand for gas?
What is demand decreases?
Goods where if the price of one rises, the demand for the other falls.
What are substitutes?
This term describes goods that are used together, like hot dogs and buns.
What are complements?
Name one factor (other than price) that can shift supply.
What is input costs, number of producers, technology, taxes/subsidies, or expectations?
The equilibrium point shows both equilibrium price and this.
The government sets a price floor on milk above equilibrium. What is the result?
What is a surplus?
When demand goes up, what happens to quantity supplied?
What is it increases (movement along supply curve)?
This is the difference between a change in demand and a change in quantity demanded.
Demand shifts the curve, quantity demanded moves along the curve
This is the term for the point where producers are willing to supply exactly what consumers are willing to buy.
What is equilibrium?
If demand increases and supply stays the same, equilibrium price will do this.
What is rises?
A price ceiling on rent below equilibrium causes this kind of problem.
What is a shortage?
This type of graph shows both supply and demand curves and is used to find equilibrium.
What is a supply and demand graph?