Supply
The different quantities of a good that sellers are
willing and able to sell (produce) at different prices.
what is supply?
The different quantities of goods that consumers are willing and able to buy at different prices.
what is demand
% change in quantitiy/% change in price is..
what is the elasticity coefficient
Maximum legal price a seller an charge for a product. Price will be BELOW equilibrium, causing a shortage.
what is a price ceiling
in a simple supply and demand graph, the negative line is...
what is the demand line?
what is a surplus
more goods are demanded than available
what is a shortage?
a perfectly horizontal line on an elasticity graph shows...
what is perfectly elastic coefficient
Minimum legal price a seller an charge for a product. Price will be ABOVE equilibrium, causing a surplus.
what is a price floor?
in a simple supply and demand graph, the positive line is...
what is the supply line?
at a grocery store, what is their supply?
the groceries in the store
a rapid and sudden increase in demand causes....
a shortage
Measures how sensitive quantity supplied is to a change in price.
what is price elasticity of supply?
A per unit tax on producers. For every unit made, the producer pays a tax. The goal is for the producer to make less of the good.
what is an excise tax?
in a simple supply and demand graph, shortage is...
what is below the equilibrium
1. Prices/Availability of Resources
2. Other/Alternate Goods
3. Technology
4. Taxes & Subsidies
5. Expectations of Future Profit
6. Number of Sellers
are examples of...
what are the 6 determinants of supply
the inverse relationship between price and quantity
what is law of demand
Quantity is INsensitive to a change in price.
what is inelastic supply
tax burden paid entirely by consumers
what is perfectly inelastic
what is a triangle to the left or below the equalibruim?
There is a DIRECT (or positive) relationship between price and quantity supplied.
what is the Law of Supply?
1. Tastes and Preferences
2. Price of Related Goods (Substitutes and Complements)
3. Income (Normal Goods and Inferior Goods)
4. Number of Buyers
5. Future Expectations
are examples of ...
what are the 5 determinants of demand
Easier to produce, low cost, generic inputs
Elasticity coefficient is greater than 1
Tax on imports that increases the world price.
what is a tariff?
consumer surplus is ______ producer surplus on a graph
what is above?