SUPPLY & DEMAND
As the price of a good increases, what happens to the quantity demanded?
It decreases.
What is the rivalry between companies selling similar products called?
Competition.
A measure of how sensitive or responsive supply or demand is to economic changes.
What is elasticity?
What type of market gives buyers an advantage because there is generally more supply than demand?
Buyer's Market.
An economic and political system based largely on the free market and private ownership.
What is capitalism?
As the price of a good increases, what happens to supply?
Supply increases.
What happens when supply and demand are equal?
Equilibrium.
The degree to which demand changes when the price of a product changes.
What is price elasticity?
What type of market gives sellers an advantage because demand exceeds supply?
Seller's Market.
A market where one company controls the supply of a good or service.
What is a monopoly?
What occurs when quantity demanded is greater than quantity supplied?
Shortage.
What is the actual price where quantity supplied equals quantity demanded?
Equilibrium Price.
What type of demand has a large change in demand when price changes?
Elastic Demand.
An economic system where production, wages, and prices are largely determined by supply and demand.
What is a free market?
Something's usefulness and the degree to which it satisfies wants.
What is economic utility?
What occurs when quantity supplied is greater than quantity demanded?
Surplus.
What is the quantity of a product bought and sold at the equilibrium price called?
Equilibrium Quantity.
What type of demand has little or no change when price changes?
Inelastic Demand.
In a buyer's market, are buyers or sellers generally in a stronger position when negotiating price?
Buyers.
Why might government regulate businesses?
To help protect safety, consumers, competition, and the public interest.
What economic theory explains how buyers and sellers interact and how price affects supply and demand?
Law of Supply and Demand.
Why does equilibrium usually not last very long? What is constantly changing?
Suppliers, competitors, consumers, and other market forces are constantly changing.
Name two examples of products with inelastic demand from the lesson.
Gasoline, cigarettes, or salt.
In a seller's market, what usually exceeds supply?
Demand
A company is the only major supplier of a product, and other companies face major barriers to entering the market. What is this called?
Monopoly.