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21 Cards in this Set
- Front
- Back
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Supply decreases, demand remains the same. What occurs? |
Shortage; price goes up |
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Supply increases, demand remains the same. What occurs? |
Surplus; price goes down |
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Demand decreases, supply remains the same. What occurs? |
Surplus; price goes down |
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Demand increases, supply remains the same. What occurs? |
Shortage; price goes up |
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Law of Demand |
If price goes down, the demand for product increases. |
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Changes in quantity supplied/demanded. What is it caused by and where does it shift? |
Caused by change in price. Shifts to the right side of the line if it is an increase. |
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Shift in demand caused by: |
- prices of substitutes - changes in income level - changes in preference |
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Shift in supply caused by: |
- changes in prices of resources - changes in technology - changes in quantity of resources available |
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Demand of labour |
- derived from demand for goods. Households = suppliers Businesses = consumers - the wage rate is the price of labour |
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Monopolistic competition |
- many sellers of similar but unique products - products have been substituted - can control their own prices E.g. Retail stores |
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Oligopoly |
- few large sellers dominate industry - can control prices but if they compete prices they lose revenue E.g. Airlines, banks |
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Monopoly |
- only one seller offers product/service - controls prices - often regulated by government E.g. Power suppliers, LCBO |
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Perfect Competition |
- no seller influences price of goods (quantities not large enough) - many sellers of similar products E.g. Agriculture |
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Elastic |
- quantity demanded changes greatly depending on price - has many substitutes - PED greater than 1 E.g. Butter |
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Inelastic |
- quantity demanded changes less with price changes - doesn't have many substitutes - PED less than 1 E.g. Alcohol |
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Factors influencing elasticity |
- luxury v. necessity - # of substitutes - household budget |
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Industrial Union |
- represents workers in a given industry regardless of the job they perform E.g. Oil workers |
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Trade Union |
- represents workers in the same SINGLE occupation regardless of work E.g. Electrical workers |
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Public Sector Union |
- represent workers employed by any level of government in Canada |
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Labour Union |
- organizations of workers promoting member interests - negotiates with employers |
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Role of Unions |
- collective bargaining - negotiates wages and working conditions - responsible for wages, vacation, safety and security, training, hours, fringe benefits |
