Econ Test

Front 1

Consumer income

Back 1

The more income someone earns, the more often they will pay for a good or service.

Front 2

Number of consumers

Back 2

The more consumers there are at the moment, the more market demand increases, and the less there is the more market demand decreases

Front 3

Taste and preference

Back 3

The more consumers want a good or service causes the increase in demand to increase because of the fact that they need more to keep consumers happy

Front 4

Consumer expectations

Back 4

Perceived-value customers seek from the purchase of a good or service. See also customer needs and customers requirements

Front 5

Price of substitute goods

Back 5

Different goods that at least partly satisfy the same needs of customers and therefor, can be used to replace one another

Front 6

Price of complimentary good

Back 6

Material or good whose use is interrelated with the use of an associated or paired good such that a demand for one generates demand for thebother

Front 7

Cost of inputs

Back 7

Profit is the key to the process. Lower production costs increase profits. A decrease in production causes an increase in supply

Front 8

Number or production

Back 8

Number of producers in a market. When producers think profit will be made they enter a market. The ppa was example of this situation

Front 9

Conditions due to natural disasters/ international events

Back 9

Hurricanes, floods, and wild fires can cause a decrease in supplies

Front 10

Technology

Back 10

Technological advances can reduce the amount of labor needed to produce a good. Thereby, lowering costs and increasing productivity

Front 11

Producer expectation

Back 11

Producers often make supply decisions based on the expectation that prices will rise or fail

Front 12

Government policy

Back 12

Governments can directly affect supply in 2 ways, one offering producers to subside a cash payment at helping producers to continue to operate. It also uses excise takes to reduce the supple certain goods