Vocabulary Terms
This is the name of the table that displays price and quantity supplied
What is a supply schedule?
These people decide the prices.
Who are sellers?
If the supply curve shifts in this direction, it is considered inflationary.
What is left?
This is the name of the graph that display price and quantity demanded.
What is a demand curve?
Price has this relationship with demand.
What is an inverse relationship?
Increasing input prices will shift the supply curve in this direction.
What is left?
Coca Cola and Red Bull would be considered to be this type of good in relation to each other.
What is a substitute good?
An increase in price has this effect on supply.
What is an increase in supply?
An improvement that makes processing steel more efficient would have this effect on steel's supply curve.
What is a shift right?
This term can used to describe the following sentence: The treasury should print twice as much money as it is currently.
What is a normative economic statement?
This is the result when prices are greater than equilibrium.
What is excess supply?
If multiple new businesses join the insurance market, the supply curve would shift in this direction.
What is right?
An decrease in this variable would increase the demand of offbrand goods and decrease the demand of branded goods. (Also describe which two terms apply to each)
What is income? Offbrand goods are an inferior good, branded goods are normal goods
These 3 factors make a perfectly competitive market.
2. large # of buyers and sellers
3. Buyers and sellers are well-informed
If gas station owners expected a huge influx of oil in a couple of months from now, the supply curve would shift in this direction in the short term.
What is right?