Demand And Supply

Front 1

What is Quantity Demand?

Back 1

It is the amount of a good, service or recourse that people are willing and able to buy during a specified period at a specified price. The quantity demanded is an amount per unit of time. I.e: amount per day or per month.

Front 2

What is the Law of Demand?

Back 2

Over things remaining the same. If the price of the good rises, the quantity demanded of that good decreases. If the price of the good falls, the quantity demanded of that good increases.

Front 3

What is Demand?

Back 3

it is the relationship between the quantity demanded and the price of a good when all other influences on buying plans remain the same.

Front 4

What is the Demand Schedule?

Back 4

It is a list of the quantities demanded at each different price when all the other influences on buying plans remain the same.

Front 5

What is the Demand Curve?

Back 5

is a Graph of the relationship between the quantity demanded of a good and its price when all other influences on buying plans remain the same.

Front 6

What is Market Demand?

Back 6

Is the sum of the demands of all the buyers in a market. It is a horizontal sum of the demand curves of all buyers in the market.

Front 7

What is Change in Demand?

Back 7

is a change in the quantity that people plan to buy when any influence other than the price of the good changes. it means that there is a new demand schedule and a new demand curve.

Front 8

The main influences on buying plans that change demand are...

Back 8

Prices of related goods, Expected future prices, Income, Expected future income and credit, Number of buyers, and preferences.

Front 9

What is a substitute?

Back 9

a good that can be consumed in place of another good. I.e: Apples and oranges.

Front 10

What is a Complement?

Back 10

is a good that is consumed with another good. I.e: Ice cream and chocolate sauce.

Front 11

A __1__ in the expected __2__ price of a good __3__ the __4__ demand for that good.

Back 11

Rise

Future

Increases

Current

Front 12

A __1__ in the expected __2__ price of a good __3__ the current __4__ for that good.

Back 12

Fall

Future

Decreases

Demand

Front 13

What is a Normal good?

Back 13

A good for which the demand increases if income increases and demand decreases if income decreases. (Same)

Front 14

What is an Inferior good?

Back 14

A good for which the demand decreases if the income increases and demand increases if income decreases. (opposite)

Front 15

When do preferences change?

Back 15

When people become better informed and new good become available.

Front 16

The __1__ number of buyers in a market the __2__ is the demand for any good

Back 16

Greater

Larger

Front 17

When ___1___ change, the __2__ for one item increases and the demand for another item __3___

Back 17

Preferences

Demand

Decreases

Front 18

What is the change in Quantity demand?

Back 18

The change in quantity of a good that people plan to buy that results from a change in the price of the good.

Front 19

What is the Chane in Demand?

Back 19

A change in the quantity that people plan to buy when any influence other than the price of the good changes.

Front 20

What is the Quantity supplied?

Back 20

The amount of a good, service, or resource that people are willing and able to sell during a specified period at a specified price.

Front 21

What is the law of Supply?

Back 21

Other things remain the same,

If the price of a good rises, the quantity supplied of that good increases.

If the price of a good falls, the quantity supplied of that good decreases.

Front 22

What is Supply?

Back 22

The relationship between the quantity supplied of a good and the price of the good when all other influences on selling plans remain the same.

Front 23

What is a Supply Schedule?

Back 23

A list of the quantities supplied at each different price when all other influences on selling plans remain the same.

Front 24

What is a Supply Curve?

Back 24

The graph of the relationship between the quantity supplied and the price of the good when all other influences on selling plans remain the same.

Front 25

What is market supply?

Back 25

The sum of the supplies of all sellers in a market. The curve is the horizontal sum of the supply curves of all the sellers in the market.

Front 26

What is the Change in Supply?

Back 26

The change in the quantity that suppliers plan to sell when any influence on selling plans other than the price of the good changes. This means that there is a new supply schedule and a new supply curve.

Front 27

The main influences on selling plans that change supply are

Back 27

Prices of related goods, prices of resources and other inputs, expected future prices, number of sellers, and productivity.

Front 28

What is a substitute in Production?

Back 28

A good that can be produced in place of another good. I.E: A truck and an SUV in production at an auto factory.

Front 29

What is a Complement in Production?

Back 29

A good that is produced along with another good. I.e: Cream can be produced along side skim milk in a dairy.

Front 30

___1___ and ___2___ prices influence the cost of ___3___. And the more it costs to produce a good, the ___4___ is the quantity supplier of that good.

Back 30

Resource

input

production

smaller

Front 31

___1___ about ___2___ prices influence ___3___

Back 31

Expectations

future

supply

Front 32

___1___ of ___2___ prices of ___3___ also influence supply

Back 32

Expectations

Future

Resources

Front 33

The ___1___ the number of sellers in a market, the ___2___ is supply

Back 33

Greater

Larger

Front 34

What is Productivity?

Back 34

The output per unit of input

Front 35

An ___1___ in productivity ___2___ costs and ___3___ supply. I.e, an advance in technology increases supply

Back 35

Increase

Lowers

Increases

Front 36

A ___1___ in productivity ___2___ costs and __3__ supply. For example, a severe hurricane decreases supply.

Back 36

Decrease

Raises

Decreases

Front 37

What is change in quantity supplied?

Back 37

The change in the quantity of a good that suppliers plan to sell that results from a change in the price of the good.

Front 38

What is change in supply?

Back 38

A change in the quantity that suppliers plan to sell when any influence on selling plans other than the price of the good changes.

Front 39

What is the Market equilibrium?

Back 39

It occurs when the quantity demanded equals the quantity supplied. This means the buyers and sellers plans are consistent.

Front 40

What is the Equilibrium price?

Back 40

The price at which the quantity demanded equals the quantity supplied.

Front 41

What is the Equilibrium quantity?

Back 41

The quantity bought and sold at the equilibrium price.

Front 42

What is the law of Market Forces?

Back 42

When there is a shortage, the price rises. When there is a surplus, the price falls.

Front 43

Which 3 questions should be asked when predicting price changes?

Back 43

Does the event change demand or supply?

Does the event increase or decrease demand or supply?

What is the new equilibrium price and quantity and how have they changed?

Front 44

What happens when the Demand changes?

Back 44

The supply curve does not shift, but there is a change in the quantity supplied. The equilibrium price and quantity change in the same direction as the change in demand.

Front 45

What happens when supply changes?

Back 45

The demand curve does not shift, but there is a change in the quantity demanded. Equilibrium price changes in the same direction as the change in supply. The Equilibrium quantity changes in the opposite direction to the change in supply.

Front 46

If something effects changes in both supply and demand, which 3 questions should be asked?

Back 46

Does each event change supply or demand?

Does either event increase or decrease demand or increase or decrease supply?

What are the new Equilibrium price and quantity and how have they changed?

Front 47

If there is an increase in both demand and supply...

Back 47

Then this will increase the equilibrium quantity.

Front 48

The change in the equilibrium price is ambiguous because the..

Back 48

Increase in demand raises the price.

Increase in supply lowers the price.

Front 49

If there is a decrease in both demand and supply...

Back 49

Then this decreases the equilibrium quantity.

Front 50

The change in the equilibrium price is ambiguous because the...

Back 50

Decrease in demand lowers the price

Decrease in supply raises the price.

Front 51

An increase in demand and a decrease in supply will...

Back 51

Raise the Equilibrium price.

Front 52

The change in the equilibrium quantity is ambiguous because the...

Back 52

Increase in demand increases the quantity.

Decrease in supply decreases the quantity.

Front 53

A decrease in demand and an increase in supply will...

Back 53

Lower the equilibrium price.

Front 54

The change in the equilibrium quantity is ambiguous because the...

Back 54

Decrease in demand decreases the quantity.

Increase in supply increases the quantity.