Demand & Desire
This law states that when the price of a movie ticket drops, more people will go to the theater.
What is the Law of Demand?
This type of cost, like rent or insurance, stays the same whether you sell 1 item or 1,000.
What is fixed cost?
If a city limits how much a landlord can charge for rent below market value, this is the result.
What is shortage?
In this market type, firms have zero power over price and are known as "price takers."
What is perfect competition?
This is a group of producers who work together to control supply and keep prices high.
What is a cartel?
If the price of hot dog buns sky-rockets, people buy fewer hot dogs because they are these.
What are complementary goods?
This term describes the extra expense of making just one more unit of production.
What is marginal cost?
This occurs when the quantity demanded of a new video game is much higher than the quantity supplied.
What is a shortage?
This market structure features many firms selling products that are similar, but slightly different.
What is monopolistic competition?
This is the practice of competing through advertising or quality rather than just lowering prices.
What is non-price competition?
This concept explains why that third slice of pizza isn't as satisfying as the first one.
What is the Law of Diminishing Returns?
A business determines its ideal hiring level by comparing marginal revenue to this.
What is marginal cost?
Market prices are constantly moving toward this "balanced" point where buyers and sellers agree.
What is equilibrium?
An industry dominated by only three or four massive companies is known by this name.
Demand is called this when a small price change leads to a huge change in how much people buy.
What is elastic?
This is a visual representation of the relationship between price and quantity demanded.
What is a demand curve?
When a massive factory can produce items cheaper than a small shop, it is benefiting from these.
What are economies of scale?
This is the likely result in a market if a popular celebrity starts a trend, but supply stays the same.
What is a price increase/shortage?
This is the main reason why perfect competition is considered rare or unrealistic.
What are barriers to entry or identical products?
Producers find their supply becomes more of this as more time passes to adjust production.
What is elastic?
The "rule" predicts elasticity based on whether a good is a luxury or a necessity.
What is the Rules of the Stretch?
This is what happens when you combine variable to fixed costs.
What is total cost?
This is why market equilibrium is usually temporary rather than permanent.
What is changing market dynamics/conditions?
Large corporations in an oligopoly use this to create the illusion that many brands are competing.
What is brand proliferation/differentiations?
This is the data-filled list that shows demand at various points.
What is a demand schedule?