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;
12 Cards in this Set
- Front
- Back
|
what is price is equilibrium point between supply and demand for an item?
|
Price determination
|
|
|
amount of product available for purchase at given price?
|
supply
|
|
|
amount of product that consumer will purchase at given price?
|
Demand
|
|
|
what is the degree that price will change as supply or demand changes?
|
Price elasticity
|
|
|
what are factors affecting supply?
|
amount of production, weather, production costs
|
|
|
what are factors affecting demand?
|
number of consumers, income level change, preferences, prices of substitute, consumer expectations
|
|
|
What happens when prices drop?
|
demand can increase overtime
|
|
|
what happens when price rises?
|
supply will increase overtime
|
|
|
What is the opinion of buyers & sellers on what a product is worth?
|
Price discovery
|
|
|
Is price consistant across different markets?
|
yes, after basis is counted
|
|
|
What is the difference between futures contract price & local cash price?
|
Basis
|
|
|
What are some major changes since WW2?
|
growth of feedlots, confinement production, vertical integration,
|
