S&D 1
QS = QD
What is Market Equilibrium?
According to economics we live in a world of __________.
What is scarcity?
QS < QD
What is a shortage?
Behavior is explained by individuals ____________.
What is maximizing utility?
QD < QS
What is a surplus?
Adam Smith developed what key idea in economics about how markets are filled.
What is the invisible hand?
A change in price will change ________ ________.
Two acceptable answers.
What is quantity demanded or quantity supplied?
The next best alternative.
What is the opportunity cost?
A price ceiling will cause a _________.
What is a shortage?
The study of individual behavior and businesses in the economy.
What is microeconomics?
A price floor will create a ________.
What is a surplus?
The study of the entire economy.
What is macroeconomics?
If the market is at equilibrium and supply increases, what will happen to price to get back to equilibrium?
Price will decrease!
All potential options you could do, other than what you did?
What are trade offs?
If the market is at equilibrium and demand increases, what will happen to price to get back to equilibrium?
Price will increase!
Each sip of lemonade not tasting quite as good as the next.
What is DMU?
Thanos sees the universe in a shortage so his solution is what determinant of supply or demand?
Lower Demand; number of people in the market.
The father of modern economics, Adam Smith, wrote his famous book The Wealth of Nation in what year?
1776
An elastic demand curve will look _________ than an inelastic demand curve.
What is flatter?
Laissez-Faire economics could be described as a ________ market.
What is free?