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5 Cards in this Set
- Front
- Back
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Explain the law of demand and law of supply |
As price goes up, quantity supplied goes up, as price goes down, quantity supplied goes down. As price goes up, quantity demanded goes down, as price goes down, quantity demanded goes up. |
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List the Demand Determinants |
1. Income 2. Price of Related Goods 3. Tastes and Preferences 4. Population and Demographics 5. Expectations |
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List the Supply Determinants |
1. Input Prices 2. Technology/Productivity 3. Prices of substitute of Production 4. Number of firms in the market 5. Expectations |
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List and describe the factors of production and which why is the most important and why? |
1. Land (Natural Recources) 2. Labor (Work time and work effort that people devote to producing goods and services) 3. Capital (Tools, instruments, machines, buildings, and other items used to produce goods and services) 4. Entrepreneur Activity (Human Resources that organize land, labor and capital to produce goods and services)... Entrepreneurs are the most important because they put the other factors to use. |
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What is the state of equilibrium and what are the outcomes of equilibrium? |
When Quantity supplied equals quantity demanded. The outcomes are Equilibrium Price and Equilibrium Quantity |
