Supply
Supply is from the perspective of the ___________
Producer or Supplier
Demand is from the perspective of the ____________
Comsumer or buyer
This law states that when prices rise, producers are willing to supply more of a good.
The Law of Supply
Coke and Pepsi can be considered this type of good
Substitutes
This curve slopes downward because of the law of demand.
The Demand Curve
This is the main goal of a supplier.
To make money or maximize profits
This is the largest factor in determining demand.
Price
What do stores do that have excess supply?
Have a sale or discount
When prices rise, people feel poorer. This is termed the ______________ effect.
Income
What characteristic of a free enterprise system ensures that individuals and businesses have the right to own, use, and dispose of property as they see fit?
What are private property rights?
A decrease in the supply curve means the curve moves ______________-
What is left?
The demand curve increases in quantity as price _______
Decreases
Name at least 2 things that can shift the demand curve (hint: price is not one of them)
income fashion taste population trends price of substitutes price of complements season
When supply is greater than demand we have this problem
What is a surplus?
These goods are used together, so when the price of one increases, demand for the other decreases.
Complements
According to the law of supply, as quantity increases, price ___________________
Increases
A product that must be used in conjunction with another product, like mustard on a hot dog.
What is a compliment?
What do stores do when they have excess demand?
What is increase the price?
This is the term for when we have more demand than supply?
What is a shortage?
This is the table that shows us all the combinations of price and quantity demanded in a market
What is a demand schedule?
A movement along the curve is referred to as change in _______ supplied.
Quantity
State the Law of Demand
As price goes up, quantity demanded goes down. As price goes down, quantity demanded goes up.
This determinant of demand explains why demand for umbrellas rises when rain is forecasted. (think of Petir)
Future Expectations
What is it called when consumers receive less additional satisfaction from each extra unit they consume.
The Law of Marginal Utility
This is one thing that can shift the supply curve in the market
Answers will vary