Demand
Supply
Supply and Demand
Mix
100
Demand is always from the perspective of whom?
The consumer
100
Supply is always from the perspective of whom?
The producer.
100
The place where consumers (buyers) and producers (sellers) meet to exchange goods and services is known as...
The market
100
Shannon just received a significant pay raise at work. Because of this pay increase, she has started to eat more sushi. In this example, sushi is what type of good?
a normal good
200
What does the Law of Demand say?
When price increases, quantity demanded decreases. When price decreases, quantity demanded increases.
200
What does the Law of Supply say?
When price decreases, quantity supplied decreases. When price increases, quantity supplied increases.
200
The price at which buyers and sellers agree to make an exchange is known as...
The equilibrium price or equilbrium.
200
If the price moves from $4 to $10, how much does quantity demanded decrease by?
Quantity Demanded decreases by 50 units.
300
"The willingness and ability of consumers to purchase a product at various prices within a specific time frame" is known as.....
Demand
300
"The amount (quantity) of a good or service that producers are willing and able to sell (make available) at various prices within a specific time frame" is known as
Supply
300
What is a shortage?
Shortage is when quantity supplied is less than quantity demanded (too little).
300
If an increase in the price of gaming consoles causes demand for video games to decrease, what type of goods are video games and gaming consoles?
complementary goods
400
Recently, a series of studies have demonstrated the considerable beneficial health effects of food and drink derived from the amaranth plant. This has affected consumer tastes for amaranth flour, pods, root, etc. The impact of these shifts
Demand curve to the right:
400
In an attempt to increase the consumption of healthy foods, the government offers subsidies to the producers of kale. What is the effect of this subsidy on the supply curve in the market for kale?
A subsidy to the producer will increase supply.
400
What is surplus?
Surplus is when quantity supplied is greater than quantity demanded (too much).
400
If the price for this product is set at $600, what happens to market equilibrium?
A surplus occurs.
500
Suppose that there has been a sudden influx of refugees in the small town of Dallon, leading to a doubling of the local population. Dallon's demand for food.
Shifted to the right
500
Johnny, the jeweler, increases his inventory because he expects the price of jewelry to increase at the end of the year. Change in Producer Expectations resulted in
Increase in supply
500
What are the two types of regulations governments can put on prices? Define each.
Price ceilings is when the government puts a maximum price on the product.
Price floor is when the government puts a minimum price on the product.
500
Take a look at the demand and supply curve. If demand increases, what happens to the equilibrium price and equilibrium quantity.
Equilibrium Price Increases.
Equilibrium Quantity Increases.