Demand
The two variables that change along a demand curve
What is price and quantity demanded?
The supply curve represents this at every level of quantity supplied
What is the marginal or opportunity cost?
A value greater than one represents ___while a value less than on represents ___.
Elastic, Inelastic
When demand is equal to supply, what two values are equal from consuming and supply the good.
What are marginal benefit and marginal cost.
The marginal principal states that a person will keep doing something until what two values are equal?
What is the marginal benefit and marginal cost?
An increase in price results in a reduction in quantity demanded
What is the Law of Demand?
The elasticity of demand measure the percent change in quantity demanded from a ___ percent change in this.
What is a 1% in price?
Prices signal the value of what good
What is the marginal good, or the good last produced/consumed.
If you paid 200 dollars for a bike, and now it is worth only 10 dollars to you, the opportunity cost of letting it go is ______
Individual demand is added up this way to calculate market demand
Horizontally
Input prices, technology, expected price changes and ____ shift supply
What is market size?
In the long-run, relative to the short-run, the elasticity of supply is expected to be more _____
What is elastic?
Equilibrium maximizes what value / concept
What is surplus?
Quantity demanded > Quantity supplied
Quantity demanded < Quantity supplied
What is a shortage and a surplus?
The effect on price and quantity demanded from an increase in the price of a substitute good
What is an increase in both price and quantity demanded?
The pressure from excess supply on price
What is downward pressure?
How elastic one's demand or supply depend on
Equilibrium is what determines this, which is how producers and consumers split the surplus
What is the equilibrium price?
A cost that has already been incurred and can not be recovered
The effect on price and quantity demanded from an increase in the price of a complementary good and an increase in the price of an input
What is a decrease in quantity demand and an uncertain impact on price?
The supply curve slopes upward because of this
What is rising opportunity costs?
The elasticity of demand form an increase in the price of water from 4 dollars to 5 dollars and a reduction in quantity demanded by 1
This would lead to an increase in both the equilibrium price and quantity of an normal good
What is an increase in income?
Something must be given up in order to get something.
What is scarcity?