Look at all the stuff out there
The supply of goods and services (in America) comes primarily from these sources.
What are firms/companies/governments?
Examples include salt, butter and pet fish and yachts?
What are goods with ´elastic demand´?
NY Jets #8 Jerseys, dance challenges, Pajama pants with Ugg slippers and Apple AirPods Pro
What is Consumer Taste & Preference?
The price level at which supply offered by producers equals the demand of consumers.
What is the market-clearing or equilibrium price?
hot dog, sauerkraut & buns
skateboard, knee pads & elbow pads
paint, brushes and drop clothes
What are complementary goods?
This states, that as prices increase, supply will also increase.
What is the ¨Law of Supply¨?
An example of this would be if consumers knew the price of a gallon of gas was going to increase next week, they would all fill up their tanks this on Friday.
What is consumer expectations? (of a price change to a good or service)?
Any point on a supply and demand graph where supply is greater than demand of consumers.
What is a surplus?
Iphones & Android Phones
Uber, DeCamp Bus, and NJ Transit trains
What are substitutes goods?
When the supply is increased in a market, the supply curve shifts to the right. All other factors remaining constant, it has this effect on market price.
What is a price decline (falling price/goes down)?
When a large increase in price causes a small increase in market consumption. Examples include Epi-pens and Albuterol.
What is inelastic demand?
Zombie apocalypse wipes out 50% of US.
What is a change market size/population? (Decrease in demand?)
If a government creates a price ceiling which is set below the market equilibrium price, it results in this kind of disequilibrium.
What is a shortage?
An example of this would be the Boston Red Sox set price limit on tickets for 2023 season at $95 per seat per game.
What is a Price Ceiling?
Shortage of materials, shortage of skilled labor, significant hike in minimum wage, new restrictive laws, tax on imported goods, ban on natural resource exploration
What can cause a decrease in supply (price to rise)?
Examples include US Government debt, Gasoline consumption of Montclair Fire Department, Police Department and EMS
What are goods with ´perfectly inelastic demand´?
Kings, Whole Foods, Applegates, Absolute Zero, Guerriero Gelato, Cold Stone, Creamery and Letś Yo.
What are the number of Producers?
A chart that helps an business determine at what prices demand will increase. It includes anticipated demand at each price level
What is a demand schedule?
Blue jeans, cars, eggs and iPads. Consumer demand for each of these will increase as household income increases.
What are ´Normal Goods´?
An excess of supply good or service is typically created by government initiation of this policy.
What is a Price Floor?
This results from a change in the price of a good or service. For instance, everyone knows that the best ice cream treat is coffee ice cream with crushed oreos on top. Period. If the price of that good increases, this is how consumers will respond.
What is a change (decrease) in the quantity demanded (for ice cream)?
Minimum wage gets raised from $15/hour to $150/hour
What is income?
It is the impact on a market price when the supply increases at the same time demand is increasing.
What is an unknown price? Impossible to calculate?
Compared to a Ralph Lauren Polo Button Down Shirt, an Old Navy Button Down would be considered this.
What is an ´Inferior Good´?