Mic 1
Goods and services are represented by the flow of ...
4 to 2 to the product market
When price increases quantity demand will...
decrease
Equilibrium is also referred to as
market-clearing price
Equilibrium price and quantity are determined by
Supply and Demand
Unlimited liability
where owners of a sole proprietorship are at a disadvanatge.
Income becomes expenditures by the flow
Households
quantity demand will increase
if new sellers entered the market
supply would increase
What is the price floor?
a government-mandated minimum price
Stocks are sold from
corporations raising money
Households provide labor by the flow of
resource market
when price increases
quantity supplied will increase
that would also cause
equilibrium price to decrease
What is the price ceiling?
a government mandated price
The individual study of units in an economy
Microeconomics
Human resources are sold to business in
resource market
when price decreases
quantity supplied will decrease
supply would decrease if
A natural disaster happens
Consumers will buy more while
producers make less if price decreases
what is an example of a determinant of demand
Income or Number of buyers
Households spend money to buy goods and services on the
product market
at $400 there is a
shortage
if flip phones are available and no one buys them then
demand has decreased
A new machine would cause
supply to increase
Profits
Entrepreneurs that are in a business based on incentives