Supply
What is the law of supply?
The higher the price, the more the supplier is able and willing to supply.
What is a demand schedule?
A chart showing how much someone/people demand of a product at a particular price point.
A good or service's monetary value is its what?
Price
A business owned by 1 person is known as what?
Sole prioprietorship
How are prices set in a perfectly competitive market?
Supply and demand
How do we change the quantity supplied?
Change the price
How do we change the quantity demanded?
A change in the price
When does a surplus occur?
When quantity supplied outweighs the quantity demanded?
What is an advantage to a corporation?
Easy to raise money
Transfer ownership
Easy to borrow money
Long life
What is the difference between perfect competition and monopolistic competition products?
Firms in perfectly competitive markets sell identical products, while firms in monopolistically competitive markets sell similar products.
Who is the buyer in the factor market?
Businesses/Firms
What happens to the demand for a substitute good when a product's price goes up?
The demand for the substitute good goes up.
What do we have when quantity demanded outweighs the quantity supplied?
What is a disadvantage of a sole proprietorship?
Unlimited liability
Limited access to resources
Lack of permanence
What is an oligopoly?
A market structure in which a few sellers own all or most of the market share.
How does an increase in taxes effect supply?
Shifts supply to the left as there is a decrease in supply.
What is a complimentary good?
A good that is usually bought alongside another good.
What is the most common example of a price floor?
Minimum wage
Which type of business has the highest potential for conflict?
Partnerships
Which two market structures have some differentiation of their products?
Monopolistic Competition
Oligopoly
What is elasticity?
The degree to which a change in price affects the quantity supplied.
Describe the income effect.
A change in quantity demanded can occur because a consumer feels "richer" when buying things at a lower price.
What is a price ceiling?
Maximum price set by the government.
What type of business is owned by 2 or more people?
Partnerships
Which business structure has no differentiation of products and no competition?
Monopoly