Demand
As the price of a good increases, the quantity demanded decreases
What is the law of demand?
As the price of a good increases, so does the quantity supplied
What is the law of supply?
A curve that is inverse
What is a demand curve?
When the quantity supplied of a good is higher than the quantity demanded
What is a surplus?
The quantity demanded of salt is not very sensitive to price changes
What is inelastic demand?
A good is fairly easy to produce, and the change in price greatly impacts its supply
What is elastic supply?
A supply or demand curve with a steep slope
What is an inelastic supply/demand curve?
How producers and consumers communicate with one another
What is the price system?
You eat one KitKat, and it is delicious. The second one is also good. The third one doesn't hit quite the same way. The 4th one makes you feel sick.
What is diminishing marginal utility?
The price of steel increases, so Chevy cuts back on the production of its cars
What is a cost of input determinant of supply?
At Christmas time, the supply curve for ornaments will shift to...
what is a shift to the right?
A shortage occurs when the government institutes...
These things shift demand for a good at every price level (the curve moves to the right or left)
What is non-price determinants of demand?
The motivating factor for producers to supply more when the price is high
What is profit motivation?
It is announced that the price of gas is predicted to rise steeply next month. George and others rush to the gas station to fill several canisters of gasoline immediately.
What is a demand curve shift to the right?
A price floor is put in place to protect
What is a producer?
Skinny jeans are no longer popular because low-rise jeans are the new fad. Therefore, the stores are struggling to sell them
What is taste and consumer preference?
Farmers can't quickly change their supply of crops to respond to a change in price because it is a very long process to get to harvest
What is inelastic supply?
The point on a graph where supply and demand curves intersect
What is market equilibrium or market clearing price/quantity?
An example of a price floor that protects workers in low skilled jobs
What is minimum wage?