Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
21 Cards in this Set
- Front
- Back
|
Demand
|
shows us the relatoinship between the price of a good and the quantity that buyers are willing and able to purchase
|
|
|
Factors that influence demand
|
TRIPEN- Tastes, Related goods, Income, Price, Expectations, Number of buyers
|
|
|
Substitutes
|
used in place of another good; rise in price of a substitute increases demand for the other good and vice versa
|
|
|
Complement
|
goods that are consumed together; rise in price of one good decreases demand for the other
|
|
|
Market demand
|
the sume of all buyers' demand (more buyers = more demand)
|
|
|
law of demand
|
there is an inverse relationship between price and quantity demanded, holding all other factors constant
|
|
|
change in quantity demanded
|
influenced only by price; shifts point up and down curve
|
|
|
change in demand
|
influenced by the other factors; causes shift in demand curve
|
|
|
Supply
|
the relationship between the price and quantity supplied
|
|
|
Tentative law of supply
|
when price of a good goes up, quantity supplied also goes up and vice versa (but not ALWAYS)
|
|
|
Factors that influence supply
|
NEGPIT- Number of sellers, Expectations, Government, Price, Input price, Technology
|
|
|
Ways that government can influence supply
|
1) Taxes- collected from seller
2) Tariffs/quotas- on goods coming into the country 3) Subsidies (increases supply) |
|
|
Input prices
|
prices of resources needed to produce good
|
|
|
Schedule
|
a fancy word for "graph"
|
|
|
Normal good
|
Demand for these goes up as income increases
|
|
|
Inferior good
|
Demand for these goes down as income rises (cheap stuff)
|
|
|
points of tendency
|
if market is not in equilibrium it will be naturally moving towards it
|
|
|
surplus
|
quantity supplied exceeds quantity demanded
|
|
|
shortage
|
quantity demanded exceeds quantity supplied
|
|
|
Consumer surplus
|
the difference between the max price a buyer is willing to pay and how much the good actually costs; area under the D-curve and above the equilibrium price line
|
|
|
Producer surplus
|
the difference between the minimum selling price and actual price received; area above the S-curve and under equilibrium price line
|
