Supply & Demand Basics
What is supply
How much sellers want to sell.
What is a shift in supply or demand?
A change caused by outside factors.
What is an oligopoly?
A few big sellers control the market.
What can the government do to help in the market?
Use rules or money to fix problems.
Why might monopoly be a problem for consumers?
It can lead to high prices and no choices.
What does demand mean?
How much buyers want to buy.
What do sellers do when a product is expensive?
They want to sell more of it.
What is perfect competition?
Many sellers selling the same product.
What are public goods?
Things everyone uses, like roads or lights.
What does minimum wage mean?
The lowest legal pay a worker can earn.
What is price?
How much money a product costs.
What do buyers do when a product is cheap?
They want more of it.
What is a monopoly?
One seller controls the market.
Why might the government raise minimum wage?
To help workers earn enough to live.
What kind of jobs usually pay more?
Jobs that need more skill.
What happens to price if many people want something?
The price goes up.
What happens to price when few people want something?
The price goes down.
What is monopolistic competition?
Many sellers selling different products.
What is a free rider?
Someone who uses something but doesn't pay for it.
What is wage?
How much workers are paid.
What is equilibrium?
The price where supply equals demand.
What happens to supply during a storm or shortage?
Supply goes down.
What is a market structure?
It describes how many sellers are in a market.
What is the Tragedy of the Commons?
When too many people use a resource and ruin it.
How does competition affect prices for consumers?
More competition = better prices for consumers.