Supply
This law states that as price increases, quantity supplied increases.
What is the Law of Supply?
A government-set minimum price is called this.
What is a price floor?
The point where supply and demand meet is called this.
What is equilibrium?
Money you earn is called this.
What is income?
The cost of borrowing money is called this.
What is interest?
A factor that shifts supply, like technology or cost of production, is called this.
What is a supply shifter (determinant of supply)?
If a price floor is set above equilibrium, this occurs.
What is a surplus?
If price is above equilibrium, this occurs.
What is a surplus?
Money you spend is called this.
What are expenses?
Interest calculated only on the original amount is called this.
What is simple interest?
If the cost of materials increases, supply will shift in this direction.
What is left (decrease in supply)?
The most common real-world example of a price floor is this wage policy.
What is minimum wage?
If consumer income increases for a normal good, demand shifts in this direction.
What is right (increase in demand)?
This type of expense stays the same every month (like rent).
What is a fixed expense?
Interest earned on both the principal and previous interest is called this.
What is compound interest?
This happens when producers respond to a price change by changing quantity supplied.
What is a movement along the supply curve?
When a price floor is below equilibrium, what happens to the market?
What is no effect?
A change in price causing movement along the demand curve is called this.
What is a change in quantity demanded?
This budgeting rule suggests saving 20% of your income.
What is the 50/30/20 rule?
If interest rates rise, borrowing becomes this.
What is more expensive?
If new technology makes production cheaper, what happens to supply and price?
What is supply increases and price decreases?
Why might governments create price floors?
What is to protect producers’ income (or ensure fair wages)?
If demand increases and supply decreases, what happens to price?
What is price increases? (quantity is uncertain)
If expenses exceed income, you have this financial situation.
What is a deficit?
If you invest money with compound interest, what happens over time?
What is it grows faster (exponentially)?