Definitions
Define "Price"
the amount of money that a buyer gives to a seller in exchange for a good or a service
If there were a surplus of mangos, would demand increase or decrease?
Down
As demand increases, supply...
Decreases
As supply decreases, demand...
Increases
What is a premuim?
The amount you pay before coverage kicks in
Define Demand
the quantity of a good or service that consumers are both willing and able to buy at various prices during a specific time period
What would happen to the cost of bananas if the supply was depleted
cost goes up
True or False: Supply and demand have a positive relationship
False
True or False: Demand has a negative relationship with supply
True
What is communism
A classless society
Define "Supply"
The number of units of goods or services a supplier is willing and able to bring to the market for a specific price.
Labubus are a very popular collectible among the youngsters these days. Would the high demand mean there are more or fewer of them available to purchase
Fewer
What happens to demand if supply drops
Demand goes up
When supply and demand are in equilibrium...
Neither supply or demand go down
Price ceiling
government-imposed maximum price limit on a product
When crypto became very popular, demand for GPUs began to skyrocket, but the production couldn't keep up with the demand, which resulted in high price increases. Does this actually represent the relationship between supply and demand
Yes
why would it be bad for a company if they had to much supply and not enough demand
It forces the price down, making the company lose profit
What is the law of demand
As the price increases the demand will decrease
The economy is run by private businesses that decide what to produce.
Define elasticity
How sensitive an economic variable is
Stores will often sell winter coats for lower prices after the winter season. Why is this?
They have a surplus of coats due to it being warmer, resulting in less demand for the product.
What happens to the value of the dollar when more money is printed?
It would decrease
Say the prices of a luxury brand began to soar, this would most likely indicate that the demand for the brand has...
Increased
Name 3 communist countries