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;
10 Cards in this Set
- Front
- Back
|
What is the definition of demand?
|
Quantity of goods and services that consumers are willing to purchase at various prices.
|
|
|
What is the definition of supply?
|
Teh amount of a good or service offered for sale.
|
|
|
What determines prices in an market economy?
|
The law of supply and demand determines prices.
|
|
|
What determines demand?
|
Needs, Wants, Incomes
|
|
|
What determines supply?
|
Demand often dictates supply.
|
|
|
What is equilibrium price?
|
The price at which supply equals demand is known.
|
|
|
What is a business cycle?
|
Expansion and contraction by many industries at once.
|
|
|
What are two major phases?
|
Expansionary and Contractionary
|
|
|
What is Economic Expansion?
|
Occurs when consumer spending is strong and companies invest in new factories and equipment.
|
|
|
What is Economic Contractionary?
|
Occurs when consumers rduce their purchases and business investment.
|
