Supply & Demand
As price increases, the quantity demanded decreases; as price decreases, the quantity demanded increases.
What is Law of Demand?
A market with only one firm or dominated by one firm
What is Monopoly?
Someone who benefits from a product, good, or service without paying for it
What is a free rider?
A system where buyers and sellers exchange goods, services, or resources
What is a market?
In a labor market, the price of labor is
What is wage?
The point on a graph shows where supply equals demand
What is the Equilibrium Point?
Firms selling similar but slightly different products
What is Monopolistic Competition?
Overuse of shared, common resources/goods
What is the Tragedy of the Commons?
A government payment to support a business or market
What is a subsidy?
More producers have moved into the area, causing the supply curve to shift to the right. This is an example of what shifter of supply.
What is number of suppliers?
As price increase, the quantity supplied increase; as price decreases, the quantity supplied decreases.
What is the Law of Supply?
A market structure has many firms selling identical products
What is Perfect competition?
A cost or benefit to an uninvolved third party
What is Externality?
The ability of a firm to control prices is called this.
What is market power?
If the price of peanut butter rises and demand for jelly falls, these goods are this type.
What are complements?
This happens when there are more buyers than goods available.
What is a shortage?
Monopolies have the _____ amount of competition
What is least?
The property of a product whereby the seller cannot keep nonpayers (free riders) from consuming the product
What is Nonexcludable?
An increase in price of Coke will lead to an increase in demand for Pepsi. This is an example of this demand shifter.
What is Substitution?
This happens when there are more goods available than buyers want.
What is a surplus?
A factory polluting a river is an example of this type of externality.
What is a negative externality?
A workplace becomes more dangerous, which causes the supply of labor to shift in this direction
What is to the left (decrease)?