Demand
The amount of goods and services that a consumer is willing and able to buy at various prices in a given time period
What is DEMAND?
The amount of goods and services that a producer is willing and able to sell at various prices in a given time period
What is SUPPLY?
Buyers and Sellers have opposite goals. Buyers want the _______ price while Sellers want ______ price.
What is LOWEST (Buyers) and HIGHEST (Sellers)?
This drives businesses to do literally anything. Without it, they wouldn't exist nor would they want to.
What is PROFIT?
When we say price controls, this is who is really doing the "controlling"
Who is the GOVERNMENT?
Dictated by the Law of Demand, the Demand Curve is described as being (the direction it travels)
What is sloping DOWNWARDS and to the RIGHT?
Dictated by the Law of Supply, the Supply Curve is described as being (the direction it travels)
What is sloping UPWARDS and to the RIGHT?
The point on a market graph where the Quantity Supplied = Quantity Demanded. It's where buyers and sellers shake hands and compromise.
What is the Market Equilibrium?
This is a type of cost that does not change no matter how often or how much you use it. It's also known as OVERHEAD.
What is FIXED cost?
A control that dictates the LOWEST possible price a product can sell for
What is the PRICE FLOOR?
When it's not about price, it's not about quantity. In the case of Demand, these are the shifters (non-price determinants)
What is PINER? (Preferences, Income of the Buyer, Number of Buyers, Expectations of the Future, and Related Goods)
When it's not about price, it's not about quantity. In the case of Supply, these are the shifters (non-price determinants)
What is SCENT? (Subsidies, Cost of Production, Efficiency, Number of Sellers, and Technology)
What is DISequilibrium?
This is a type of cost that does change as you use it. The more you use it, the more you have to pay, the less you use it, the less you have to pay. Also known as Operating Costs.
What are Variable Costs?
A price control that dictates the HIGHEST a price can sell for
What is the PRICE CEILING?
When prices increase, the quantity demanded decreases. But when prices decrease, the quantity demanded increases. One goes up, the other does the opposite! This is known as what sort of relationship?
What is an INVERSE relationship between price and quantity demanded also known as the LAW OF DEMAND?
When prices increase, the quantity supplied increases. But when prices decrease, the quantity supplied decreases. One goes up, the other does the same thing! This is known as what sort of relationship?
What is an DIRECT relationship between price and quantity supplied also known as the LAW OF SUPPLY?
This causes surpluses to occur.
All of the money generated from a business BEFORE paying costs
What is REVENUE?
What are SURPLUSES?
As you add in one more unit of something, it becomes less useful to you. (You eat one burger, it's great! but the 5th and 6th burgers not so much) This is known as what principle.
What is the Principle of Diminishing Marginal Utility?
The government offers money to a producer to encourage them to produce more of a certain good. This money is known as a:
What is a subsidy?
This causes shortages to occur.
What is a price lower than the equilibrium? (not enough to go around since it sells out to fast)
The Three Stages of Production
What are Increasing Marginal Returns, Diminishing Marginal Returns, and Negative Marginal Returns?
The Minimum Wage is perhaps the most famous example of this
What is a PRICE FLOOR?