Demand
Supply
Supply and Demand
Mix
Market Structures
100
"The willingness and ability of consumers to purchase a product at various prices within a specific time frame" is known as.....
Demand
100
Supply is always from the perspective of whom?
Producer. Firm. Business.
100
The place where consumers (buyers) and producers (sellers) meet to exchange goods and services is known as...
The market
100
Shannon just received a significant pay raise at work. Because of this pay increase, she has started to eat more sushi. In this example, sushi is what type of good?
a normal good
100
Factors that make it difficult for new firms to enter are called...
Barriers to Entry
200
Suppose that there has been a sudden influx of disease in the small town of Dalton, leading to a halving of the local population. Dallon's demand for food will...
Shift Left
200
What is a shortage?
Shortage is when quantity supplied is less than quantity demanded (too little).
200
The price at which buyers and sellers agree to make an exchange is known as...
The equilibrium price or equilbrium.
200
A list or table that shows how much of a good ALL consumers are willing to buy is called:
Market Demand Schedule
200
When a corporation has exclusive control over pricing with little to no competition from others, this is referred to as a...
Monopoly
300
If the price moves from $4 to $10, how much does quantity demanded decrease by?
Quantity Demanded decreases by 50 units.
300
Johnny, the jeweler, increases his inventory because he expects the price of jewelry to increase at the end of the year. Change in Producer Expectations resulted in
Increase in supply
300
Take a look at the demand and supply curve. If demand increases, what happens to the equilibrium price and equilibrium quantity.
Equilibrium Price Increases.
Equilibrium Quantity Increases.
300
If an increase in the price of gaming consoles causes demand for video games to decrease, what type of goods are video games and gaming consoles?
complementary goods
300
When an association of manufacturers work together to control pricing at higher levels and restrict competition this is called a:
Cartel
400
Recently, a series of studies have demonstrated the considerable beneficial health effects of food and drink derived from the amaranth plant. This has affected consumer tastes for amaranth flour, pods, root, etc. The impact of these causes the demand curve to shift...
Demand curve to the right
400
In an attempt to increase the consumption of healthy foods, the government offers subsidies to the producers of kale. What is the effect of this subsidy on the supply curve in the market for kale?
(What shifts which way?)
A subsidy to the producer will increase supply.
(Shift supply right)
400
What is surplus?
Surplus is when quantity supplied is greater than quantity demanded (too much).
400
New production technology has been established for a product at the same time consumer tastes has changed to want more of that product.
What happens in the market?
(what shifts, which ways?)
Supply shifts right & Demand shifts right
400
The legal maximum price that sellers may charge for a product is called...
Price Ceiling
500
What are the FIVE shifters of DEMAND?
Preferences and Tastes
Related Good Pricing
Income
Market Size
Expectations
500
What are the SIX shifters of SUPPLY?
Market Size
Actions of the Government (Regulation & Taxes)
Subsidies (from the government)
Technology
Expectations of the future
Resource Costs
500
What are the two types of regulations governments can put on prices? Define each.
Price ceilings is when the government puts a maximum price on the product.
Price floor is when the government puts a minimum price on the product.
500
If the price for this product is set at $600 due to a price floor, (where the red line is), what happens in the market?
A surplus occurs.
500
Competition through ways other than price, like advertising, celebrity endorsements, or location is called:
Non-Price Competition