Supply
Works with supply to set prices
What is Demand?
Desire willingness and ability to buy a product
What is Demand?
If income increases, then the demand for cars will increase (Demand)
What is income?
The point at which supply and demand meet/There is neither a surplus nor a shortage
What is the equilibrium point?
hot dog and buns
What are Complementary Goods?
The Law of Supply states that as prices increase, supply does this
What is increase?
In the winter, the demand for bikinis decrease (Demand)
What is Weather?
Amount by which quantity supplied is higher than quantity demanded
What is surplus?
Money businesses receives for a product over cost
What is profit?
Graph that shows the quantity supplied at each price point
What is a supply curve?
Products that must be used in conjunction with another product
What are Complementary Goods?
A decrease in the price of microchips increases the supply of computers (Supply)
What is the Price of Related Goods?
Various quantities of a good or service that producers will sell at all possible market prices
What is supply?
What is shortage?
Give an example of a government action that can cause a shift in supply
Excise tax, subsidy
Fads, Trends, Peer Pressure and Personal Opinions altering demand are all examples of this
What is consumer tastes?
Popularity of Garden Gnomes Soars (Demand)
What are Tastes & Preferences?
A chart that helps an business determine at what prices demand will increase
What is a demand schedule?
Supplier will normally offer more for sale at higher prices and less at lower prices.
What is the Law of Supply?
When supply curve shifts to the right, what affect does it have on the equilibrium price
What is goes down?
Demand comes primarily from this group
What are consumers?
Prices of Bananas skyrockets - Affect on production of Strawberry Banana Smoothies (Supply)
What is the Cost of Inputs?
The maximum allowed price for goods and services that the government deems supply and demand principles are unfair
What is the price ceiling?
A factor which significantly affects the nature or outcome of something
What is a Determinant?