Supply
The quantity of goods that seller are prepared to sell at any given price over a period of time.
What is (the Law of) Supply? pg 67
This term is used to describe- Quantity demanded equals quantity supplied.
What is (Market) equilibrium(price)? pg 83
What is the main role of this term is to allocate scarce resources.
what is the price mechanism? pg. 85
A tax on spending, e.g. VAT or excise duty.
What is an ad valorem tax? pg 90
In regards to the supply curve, this is caused by a change in the good’s own price;
What is movement? pg. 67
This happens if the price is above equilibrium.
What is Surplus (excess supply)?pg 76
When changes in price encourage buyers and sellers to change the quantity they buy and sell.
What is Incentive (function)? pg 88
Consumers bear more of the tax if the demand is....
What is inelastic? pg93
In regards to the supply curve, this is caused by non-price factors (e.g., technology, production costs).
What is a Shift?pg69
The price where demand equals supply, so no shortage or surplus exists.
What is the “market-clearing price”?pg83
When changes in price lead to more or less being produced.
What is rationing function? pg 88
with this type of demand, the Producers bear more of the tax
What is Elastic (demand) pg. 93
This is the formula for
PES = % change in quantity supplied ÷ % change in price.
What is Price Elasticity of Supply (PES)?
The pressures which force the market towards an equilibrium point.
What are free market forces? pg 79
When changes in price give information to buyers and sellers to that influence their decisions to buy and sell.
What is Signaling (function)? pg 88
A grant given that lowers the price of a good.
What is a subsidy? pg 95
To name a few, these are factors of?
goals of sellers, government legislation, weather...
What are factors that influence PES.? pg. 69
Demand is greater than supply.
what is excess demand? pg 76
This example shows which type of pricing?
Example: A new pair of limited edition Nike sneakers drops.
Only 100 pairs available, but 1,000 teens want them.
What is rationing?
In regards to Subsidies, who benefits the most with Inelastic Demand?
Who are Consumers? pg.