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Demand
Elasticity
Supply
Costs of production
100
What is equilibrium?
Where supply and demand meet.
100
Demand is whose side of the market?
consumers/buyers
100
The definition of elasticity.
the measurement of the consumers or suppliers reaction to price?
100
The definition for the Law of Supply
"the higher the price the larger the quantity produced"
100
What are costs that do not change no matter how much a good is produced.
fixed costs
200
What would happen to equilibrium price for paper if people stopped sending letters and businesses stopped sending bills and both only used email.
Demand would go down causing equilibrium price to go down.
200
Which way does the demand curve slope. Why?
Downward from left to right. Because the cheaper a product is the more people will want to buy.
200
What is the the biggest factor in the elasticity of supply. Why?
Time. Because suppliers need time to react to price changes. Example: Farmers can't instantly grow more crops
200
When the Supply curve shifts what happens to the demand curve?
Nothing, it will change equilibrium but not demand.
200
These are two examples of variable costs.
raw material, labor, electricity etc.
300
What is elasticity of demand?
The measure of how demand responds to price.
300
What is the amount wanted at a certain price?
Quantity Demanded
300
What are products that are often considered inelastic.
essential/necessities goods
300
Why is the supply curve stupid wen it shifts?
With a decrease in supply it looks like the new supply curve shifts above the old supply curve, but really it just shifts to the left.
300
This is how you calculate Profit.
(total revenue - total cost)
400
Give 1 example of an elastic and an inelastic good.
Could be anything.
400
Inferior goods and whats unique about their demand. Give 1 example.
Goods that are substitutes for regular goods. Demand for these goes down as people make more money. Any Example.
400
If price goes up and told revenue goes up then the demand for this good is....elastic/inelastic? Why?
Inelastic. Because with a price change, there is very little demand change so the higher the price it sells for the more the supplier will make.
400
These are 4 reasons the supply curve would shift.
a change in factors of production, the number of sellers in the market, government regulations, change in technology, change in opportunity by producing another product, change in price expectations.
400
Is the same as Marginal Revenue.
What is market price?
500
What is a surplus? What is a shortage?
A surplus happens when there is more supply than demand and a shortage happens when there is more demand than supply.
500
What are 5 things that change demand.
Consumers' Preferences, change in consumers' information, change in income, Change in number of consumers in the Market, change in consumers' expectations of the future, change in price of related goods. Related goods = substitutes and compliments.
500
This is what the % change in demand for Christmas lights is if the price increases by 10% and they have an elasticity quotient of 0.6. (who wrote down the equation?)
What is a 6% drop in quantity demanded?
500
This is a graph of what happens to the supply and quantity demanded for cotton if a boll weevil infestation hits all the crops.
What does your graph look like?
500
This is how does a company determines how much of a product to make.
Where profit is the highest.