Demand comes from which actors in economics? (What do you have to think as?)
Consumers
100
Considering supply involves which economics actors? (What do you have to think of yourself as?)
Producers, Firms, Businesses, Companies.
100
What are the three factors that can shift demand?
Preference, Income, Prices of Related Goods.
100
The point at which quantity supplied equals quantity demanded.
What is Market Equilibrium
100
When the government places a price floor or a price ceiling on the market it creates this
disequilibrium
200
The law of demand states that as prices decrease, demand does this
Increase
200
The Law of Supply states that as prices increase, supply does this
Increases
200
What are the 4 factors that can shift the supply curve?
Quotas, Resource Prices, Taxes, Technology
200
Disequilibrium when quantity demanded is less than the quantity supplied. __________Bonus: how to you correct for this?
What is Surplus
Bonus: Lower prices
200
What type of goods are hot dog and buns?
What type of goods are Android phones and iPhones?
Compliments
Substitutes
300
Elasticity: When a large increase in price causes a small change in the quantity demanded this is
Inelastic
300
Price and quantity supplied have what kind of relationship in the Law of Supply?
Direct
300
What effect would the increase in cheese prices have on the supply curve for pizza?
A supply shift to the left.
300
Disequilibrium when the quantity demanded is greater than the quantity supplied. __________ Bonus: how do you fix this?
Shortage
Bonus: increase prices
300
Red Sox set price limit on tickets for 2017 season at $50 this is a example of a...
price ceiling
400
A product that must be used in conjunction with another product
What is a compliment.
400
Elasticity: What describes the speed at which an orange produce can increase the production of oranges?
Inealstic
400
What would the decrease in the price of Xbox controllers have on the demand curve for batteries. ____________ (bonus why?)
A rightward shift in the demand for batteries.
Bonus, because it is a compliment.
400
When the government sets a price limit, a maximum price, it is called ___________Bonus: what type of disequilibrium does it create?
A price ceiling
creates a shortage
400
Government declares that student loan interest rates must be higher than 8%
price floor
500
McDonalds and Burger King would be great examples of what kind of products?
Substitutes.
500
With this supply can become elastic.
Time
500
The government limits the number of cars brought into the country. What happens to the supply curve for cars? ___________Bonus: what is this limit called?
The supply curve would shift to the left for cars.
Bonus: Quotas
500
The name for the price control a government sets for a minimum price to be charged/paid _________Bonus: what type of disequilibrium does this create?
Price Floor
Causes a surplus
500
If a bookstore manager prices a book lower than equilibrium then there will be this