BASIC CONCEPTS
This is the study of how people make choices to satisfy needs and wants.
What is economics?
This is the amount of a good available.
What is supply?
This is the price where supply equals demand.
What is equilibrium?
The government sets a maximum price below equilibrium during an emergency.
What problem is MOST likely to occur?
What is a shortage?
This is what hit Ms Huffman on her 18th birthday
What is a baby cow?
This occurs because resources are limited but wants are unlimited.
What is scarcity?
This is what consumers are willing and able to buy.
What is demand?
When there is “not enough” product available.
What is a shortage?
The government sets a minimum wage above equilibrium.
What market outcome does this create in the labor market?
What is a surplus of workers (unemployment)?
This person was Ms Huffman's insane roommate in college. (First name only)
Who is Heaven?
This term describes giving something up when making a choice.
What is a trade-off?
When prices rise, this decreases.
What is demand? (Law of Demand)
When there is “too much” product available.
What is a surplus?
A subsidy is given to producers.
What happens to supply AND equilibrium price?
Supply increases; equilibrium price decreases.
This is Ms Huffman's fiance. (First AND last name)
Who is Kenan Travis?
This is the value of the next best alternative you give up.
What is opportunity cost?
When prices rise, this increases.
What is supply? (Law of Supply)
At equilibrium, there is no ______ or ______.
What is shortage or surplus?
A city places a price ceiling on rent to make housing affordable.
Give ONE likely unintended consequence.
Examples: housing shortages, long waitlists, reduced quality, black markets
This is Ms Huffman's favorite Michael Jackson song.
What is human nature?
Explain what happens to price when demand increases but supply stays the same.
Price increases.
A store sells out every day by noon. What should they do?
Increase supply or raise price.
Explain how producers respond to higher prices.
They increase production/supply.
During a crisis, gas prices are capped below equilibrium, but demand rises sharply.
Explain TWO effects this will have on the market.
Shortage AND behaviors like long lines, rationing, or black markets
What is Ms Huffman's middle name? (must be spelled correctly)
Makensie