Supply and Demand Graphs
The price is set below equilibrium.
What is a shortage?
When insulin prices rise, this happens to demand.
What is demand stays the same (Inelastic)?
This is a market has many sellers and identical products.
What is perfect competition?
Ways that competition benefits consumers.
What is Lower prices, better quality, innovation?
Two products used together.
What are compliments?
The price is set above equilibrium.
What is Surplus?
This is when many substitutes exist.
What is elastic?
This market structure has one seller and no substitutes.
What is a monopoly?
These are danger(s) of monopolies.
What are higher prices, less choice?
Two products that replace each other.
What are substitutes?
This is the point do supply and demand curves meet.
What is Equilibrium?
Luxury goods usually have this type of demand
What is elastic?
This market has few large firms dominating.
What is an oligopoly?
A cartel is.
What is a group of producers fixing prices or output?
This is when adding more workers reduces efficiency.
What is the Law of Diminishing Returns?
This is the vertical axis usually represented on a supply and demand graph.
What is price?
Necessities usually have this type of demand.
What is inelastic?
This market structure has many sellers with slightly differentiated products.
What is monopolistic competition?
This type of monopoly occurs when one company is most efficient.
What is a natural monopoly?
Wages stay the same but prices rise, real income goes…
What is down?
The demand curve shifts this direction if consumer income increases
What is demand shifts right (increases)?
A change in price has caused a big change in demand.
What is elastic?
This type of monopoly is based on patents or inventions.
What is a technological monopoly?
This is something that prevents companies from becoming monopolies and abusing their power.
What is competition?
Competition usually has this effect on prices.
What keeps prices low?