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9 Cards in this Set
- Front
- Back
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Quantity demanded |
The amount of a product that consumers wish to purchase. |
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Movement along the demand curve |
A movement down a demand curve is called an increase (or a rise) in the quantity demanded; a movement up the demand curve is called a decrease (or a fall) in the quantity demanded.
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Shifts in the demand curve |
An increase in demand means that the whole demand curve has shifted to the right; a decrease in demand means that the whole demand curve has shifted to the left. |
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The determinants of quantity supplied: the supply function |
1. The price of the product 2. The prices of inputs to production 3. The state of technology |
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Shifts in the supply curve |
A rise in the price of any input shifts the supply curve to the left, indicating that less will be supplied at any given price; a fall in the price of inputs shifts the supply curve to the right. |
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The concept of a market |
A market maybe defined as an area over which buyers and sellers negotiate the exchange of some product or related group of products. |
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The law of demand |
Demand curves have negative slopes throughout their entire range. |
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The theory of supply |
Supply curves have positive slopes throughout their entire range. |
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The law of price adjustment |
Prices rise when demand exceeds supply, and fall if supply exceeds demand. They remain unchanged when demand and supply are equal |
