Supply Basics
What does supply refer to?
The amount of a good or service producers are willing to sell
What does demand refer to?
What is movement along a curve caused by?
a change in price.
Demand increases.
What is equilibrium?
Where the supply equals the demand
If prices go up, what usually happenS to supply?
supply increases
If prices go up, what usually happens to demand?
demand decreases
What is a shift in a curve caused by?
a non-price factor.
A hurricane destroys and takes down factories. What happens to the supply?
Supply decreases
What is shortage?
When demand is more than supply
What is the law of supply?
What is the law of demand?
as prices increases, quantity demanded decreases.
If income increases, what happens to demand?
Demand shifts right
Gas prices rise, people get less gas. This is an example of what?
Movement along the demand curve.
What is a surplus?
when supply is greater than the demand.
What is one factor that can shift supply?
cost of production, technology, taxes, and numbers of sellers.
Name one factor that shifts demand.
Income, population, prices of goods.
If a new machine make production faster, what happens to supply?
Supply shifts and increases
A company invents a faster way to make shoes. What will happen?
supply will increase
What is quantity demanded?
the amount consumers buy at a specific price.
What happens to supply is products becomes cheaper?
Supply increases.
What happens to demand for a product that becomes trendy?
demand increases.
What is the difference between a shift and movement
movement makes price change. Shift is an outside factor that causes change.
A celebrity promotes a products and everyone then wants it. What will happen?
demand will increase.
What is quantity supplied?
the amount producers sell at a specific price.