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14 Cards in this Set
- Front
- Back
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Quantity demanded |
the amount that buyers are willing and able to buy |
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law of demand |
as price increases Qd decreases |
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effect of income on quantity demanded of normal goods |
as income increases quantity demanded increases |
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effect of income on quantity demanded of inferior goods |
income increases quantity demanded decreases |
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substitutes with price and Qd |
price of 1 goes up, quantity demanded of substitute goes up |
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complements with price and Qd |
price of one goes up quantity demanded of the complement goes down |
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market demand |
all of the demands added together |
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shifters of demand |
Related goods price Income (income goes up, so does demand) Tastes and prefs (ya like it ya buy it) Expectations (get a bonus, buy more) Number of buyers (more buyers, more demand) |
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what is a determinant of quantity supplied |
price |
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law of supply |
price increases, Qs increases (and vice versa) |
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shifters of supply |
Technology Input prices Number of sellers Expectations |
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steps to analyzing changes in equilibrium |
1. what curve does it shift 2. what direction of shift 3. compare new equilibrium to old equilibrium |
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shortage |
Qd>Qs |
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surplus |
Qd<Qs |
