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20 Cards in this Set
- Front
- Back
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Change in Quantity Demanded
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on the demand curve is the results from changing only the price; increase in demand will result in shortages and rising prices until equilibrium is re-established
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Change in Quantity Supplied
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on the supply curve is the results from changing only the price; Increase in supply will result in surplus and lower prices until equilibrium is re-established
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Consumers
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People or groups that" use up" goods and services
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Demand
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Downward curve
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Law of Demand
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as the price of the good increases, the quantity demanded of the good increases
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Law of Supply
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as the price of the good increases, the quantity supplied of the good increases
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Producer
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sellers… produces goods or services
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Quantity Demanded
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(QD)The amount -quantity- consumers buy at a given price
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Quantity Supplied
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the amount of a good at any given price.
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Supply
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Skyward curve
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Demand Schedule
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Table listing the price of a good and the quantity of consumers will buy at that price
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Substitution
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Replacing the purchasing of one good with another good
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Supplier
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A firm that changes raw materials into goods or services that are sold or supplied to the market place
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Supply Schedule
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a table listing the price of a good and the quantity suppliers are willing to produce at that price
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What Determines Demand?
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Related Goods, Income, Expectations, Preferences
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Ceteris paribus
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constant. All others remain the same. Everything else is equal
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Things that shift the supply curve
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Processing/ Manufacturing (P), Inputs (I), Pool (P), Expectations (E). PIPE
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Normal Good
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Demand increases when income increases
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Market Clearing Price
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price when suppl is equal to the demand.
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Inferior Good
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Demand decreases when income increases
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