Demand
Supply
Supply & Demand Shifters
Equilibrium
Price Controls
100
Explain the difference between demand and quantity demanded.
Demand: Desire and ability to buy a product at various prices.
Quantity Demanded: Specific amount of a product consumers are willing and able to buy at a given price.
100
Explain the difference between supply and quantity supplied.
Supply: The amount of a good or service that producers are willing and able to offer at different prices.
Quantity Supplied: The specific amount of a good or service producers are willing to offer at a given price. It's a point on the supply curve.
100
Does supply shift when the price of the good changes?
No - only Quantity supplied would shift in this case
100
What happens to Equilibrium (Price and Quantity) if the demand curve only shifts to the left?
Price goes down, Quantity goes down
100
Imposing a price ceiling will result in a...
Shortage
200
When creating a demand curve, _______ goes on bottom/horizontal (X axis) and ________ goes on the left/vertical (Y axis).
Quantity on X || Price on Y
200
Supply is the seller side or the buyers side?
Seller's side
200
Explain what happens if the supply curve shifts to the right
If the supply curve shifts right, it means increased supply. Prices drop, quantity available goes up
200
What happens to Equilibrium (Price and Quantity) if the demand curve only shifts to the right?
Price goes up, Quantity goes up
200
Imposing a price floor will result in a...
Surplus
300
The price of ice cream increases 20%. Using economic vocabulary, explain what will happen to Demand
Buyers face a higher price decreasing Quantity Demanded
300
The price of ice cream increases 20%. Using economic vocabulary, explain what will happen from the SELLERS perspective.
Sellers experience an increase in price, leading to a higher quantity supplied
300
Explain what happens if the demand curve shifts to the right.
If the demand curve shifts right, it means increased demand. Prices and quantity sold go up, potentially boosting profits and shifting the market equilibrium.
300
What happens to Equilibrium (Price and Quantity) if the supply curve only shifts to the left?
Price goes up, Quantity goes down
300
What is the one form of price floor that many economists say is actually a good thing?
Minimum wage
400
What causes a change in quantity demanded?
A change in price only
400
Explain the difference between a shift in Supply and a change in quantity supplied
Shift in Supply: Change in supply due to factors other than price, such as technology or input costs, leading to a new supply curve.
Change in Quantity Supplied: Movement along the supply curve caused by a change in the product's price, influencing the quantity producers are willing to supply.
400
Identify the 6 Demand Shifters. (NICEST)
Number of Consumers
Income of Consumers
Complimentary good prices
Expectations of future prices
Substitute good prices
Tastes/preferences of population
400
What happens to Equilibrium (Price and Quantity) if the supply curve only shifts to the right?
Price goes down, Quantity goes up
400
Give a real world example of a price ceiling
(answers may vary) Ex: Rent Control
500
Explain the difference between a shift in demand and a change in quantity demanded
Shift in Demand: Change in demand due to factors other than price, like income, preferences, or expectations, causing the entire demand curve to move.
Change in Quantity Demanded: Movement along the demand curve caused by a change in price, influencing the quantity buyers are willing to purchase.
500
Explain why supply and demand curves slope in opposite directions.
Demand: Prices down, quantity demanded up (law of demand).
Supply: Prices up, quantity supplied up (law of supply).
500
Identify the 6 Supply Shifters (TWINGE)
- Technology
- Weather
- Input cost
- Number of sellers
- Government policies and regulations
- Expectations of future profit
500
What happens to Equilibrium (Price and Quantity) if the demand curve shifts to the left and the supply curve shifts to the right (to the same degree)?
Price goes down, Quantity stays the same
500
The graph shows a price ceiling. What is the Qd, the Qs, What is the difference, and is this a surplus or shortage?
Qd = 400
Qs = 200
Difference = 200
Shortage