Show:
Vocabulary
Markets and Competition
Demand
Supply
Equilibrium
100
A good for which, other things equal, an increase in income leads to an increase in demand
What is normal good
100
A group of buyers and sellers of a particular good or service
What is a market
100
The downward sloping line relating price and quantity demanded
What is the demand curve
100
The amount of a good that sellers are willing and able to sell
What is quantity supplied
100
A situation in which the market price has reached the level at which quantity supplied equals quantity demanded
What is equilibrium
200
Two goods for which an increase in the price of one leads to an increase in the demand for the other
What are substitutes
200
The terms ______ and ______ refer to the behavior of people as they interact with one another in competitive markets.
What is supply and demand
200
A table that shows the relationship between the price of a good and the quantity demanded
What is the demand schedule
200
A graph of the relationship between the price of a good and the quantity supplied
What is the supply curve
200
A situation in which quantity demanded is greater than quantity supplied
What is a shortage
300
A market in which there are many buyers and many sellers so that each has a negligible impact on the market price
What is a competitive market
300
If a market has only one seller and he sets the price, this is an example of what?
What is a monopoly
300
An example of _________ would be Oreos and milk.
What are compliments
300
Since a higher price means a greater quantity supplied, the supply curve has a ______ slope.
What is positive
300
Signals that guide economic decision and therefore allocate scarce resources
What are prices
400
The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises
What is law of supply
400
Due to the fact that there are many buyers and sellers in the ice cream market, this is an example of what?
What is a competitive market
400
Any change that raises the quantity that buyers wish to purchase at any given price will ___________.
What is shift the demand curve to the right
400
If the cost of cream goes up, the supply curve for ice cream shifts to the _____.
What is left
400
If the quantity supplied changes, the graph ______.
What is doesn't shift
500
The claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
What is the law of supply and demand
500
In a perfectly competitive market, because buyers and sellers must accept the price a market determines they are said to be _______ ________.
What is price takers
500
_______, _________, _________, and _________ are all factors that shift the demand curve.
What are tastes, income, prices of related goods, expectations, and number of buyers.
500
________, ________, and _________ all can cause shifts in the supply curve.
What is input prices, technology, expectation, and number of sellers
500
For analyzing changes in equilibrium the first step is ______.
What is decide whether the event shifts the supply or demand curve