We Supply it
You Demand it
You Demand it
The idea that as price goes up, quantity demanded will decrease
What is the Law of Demand?
This is the next best alternative option for a given choice.
What is Opportunity Cost?
If supply shifts to the right, equilibrium price and quantity will change in this way.
What is price decreases, quantity increases?
This is the fundamental problem of economics.
What is Scarcity?
Sam can make 20 pies and 10 cakes. Preston can make 30 pies and 20 cakes. This person has the absolute advantage in the production of cakes.
Who is Preston?
A movement ALONG the supply curve is a change in this.
What is Quantity Supplied?
This is found when one person can produce something with a lower opportunity cost.
What is Comparative Advantage?
An abnormally cold winter would likely have this effect on the market for heaters.
What causes an increase in demand, price, and quantity in the market for heaters?
These are the four factors of production.
What are Land, Labor, Capital, and Entrepreneurship?
If it takes Madison 2 hours to do write an essay or 1 hour to complete her economics homework and it takes Samiah 3 hours to write an essay and 1 hour to complete her economics homework, this person has the absolute advantage in writing an essay.
Who is Madison (2 hours is better / quicker than 3 hours)?
These are the 5 of determinants (shifters) of demand.
What are Taste, Income, Market Size, Expectations, and Related Goods?
If Nolan can make 12 gallons of ice cream of 3 jars of peanut butter, this is his opportunity cost for making 1 gallon of ice cream.
What is 1/4 a jar of peanut butter?
Draw a supply and demand market for Ramen noodles. Assuming Ramen noodles are an inferior good, show what happens to equilibrium price and quantity for Ramen when consumer incomes increase.
Draw graph showing a leftward shift of Demand, resulting in a decrease in market price and market quantity.
Draw a increasing-cost PPC (cars and motorcycles) and label a point that is a) inefficient, b)efficient, and c)impossible.
Drawing of bowed out PPC with point A inside the curve, point B on the curve, and point C outside the curve.
If Americans produce 50 computers or 50 TVs per hour. Chinese produce 30 computers or 40 TVs per hour, this country has the comparative advantage in TVs.
What is China? (1tv = 0.75c)
According to the law of demand, as price rises, this happens to quantity demanded.
What is decrease?
Draw a graph on the board that demonstrates increasing opportunity costs
(Show PPC with bowed out curve)
Draw a supply and demand market for iPhones. Show what happens to equilibrium price and quantity for iPhones when the price of Samsung's Galaxy S (a substitute good) decreases dramatically.
Show a correctly labeled graph showing a leftward shift of D, resulting in a decrease in market price and a decrease in market quantity.
These three things would lead to an outward shift of the PPC.
What is an increase in resources (change in resource quantity), improving resources (change in resource quality), technology innovation (change in technology)?
Justin fixes 4 flats or 8 brakes per day. Tim fixes 1 flats or 5 brakes per day. The preceding is this type of problem and this person has the comparative advantage brakes.
Who is Tim? (1b = 1.5f)
If the price of cars significantly increases, then this will happen to the supply of cars.
What is nothing? (Price doesn't affect supply, it affects quantity supplied.)
Sam can make 20 pies and 10 cakes. Preston can make 30 pies and 20 cakes. This is Sam's opportunity cost of making one pie.
What is 1/2 of a cake?
Steel is an important input in the production of minivans. This is the effect on the price of minivans if there is a strike by steelworkers. Explain!
What is an increase in the price of minivans as the supply of minivans would decrease due to an increase in an input price?
This must be true in a market for a shortage to exist.
What is Qd greater than Qs? (or P less than Pe)
If it takes Madison 2 hours to do write an essay or 1 hour to complete her economics homework and it takes Samiah 3 hours to write an essay and 1 hour to complete her economics homework, this person has the comparative advantage in completing her economics homework.
Who is Samiah? (her OC is 1:1/3, while Madison's is 1:1/2)