Supply and Demand
When price increases...
Consumers are generally willing and able to purchase less of a product.
What is the product market?
A market in which goods and services are bought and sold.
What does PPF stand for?
Production Possibilities Frontier
What does scarcity mean?
The condition that arises because wants exceed the ability of resources to satisfy them.
What is the name of the Highland Huskies' mascot?
Hudson
What is the law of demand?
Price and quantity demanded have an inverse relationship. When price rises, quantity demanded falls. When price falls, quantity demanded rises, assuming other factors remain constant.
Give an example of a factor market?
Labor/Land (factories, stores, etc.)
What does the PPF graph show?
It shows the tradeoff between producing two goods.
What are factors of production?
Natural resources. labor, and capital human made resources.
Where does the Hudson River originate?
Lake Tear of the Clouds in the Adirondacks
What does an S&D graph show?
A supply and demand graph is a visual representation of how consumers and producers respond to different prices in a market.
What are intermediate goods?
A good that is produced by one firm, bought by another firm, and used as a component of a final good or service
What does the PPF curve represent?
It represents the maximum combinations of two goods than an economy can produce with its current resources.
Scarcity leads to...
Opportunity cost
What is the name of the town in Stranger Things?
Hawkins, Indiana
What is the X and Y on a S&D Graph?
X=Quantity
Y=Price
How does a traditional circular flow model go?
Household - Product Market - Businesses - Factor Market - Back to Household
What does it mean if a point is outside the curve?
The combination of goods is currently unattainable with the economy's current resources and technology.
What three questions arise when dealing with scarcity and opportunity cost?
What to produce?
How to produce?
For whom to produce?
What is the highest grossing film in the box office?
Avatar (2009). $2.92 billion
What is the market equilibrium?
The point where the supply and demand curves intersect, indicating that quantity demanded equals quantity supplied.
_____
What does it mean if a point is inside the curve?
The economy is inefficient or underutilizing resources.
What is opportunity cost?
The value of the next-best alternative you give up when you make a choice
What are the demand shifters?
Consumer preference, consumer income, number of buyers, consumer expectations, and prices of related goods.