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;
5 Cards in this Set
- Front
- Back
|
Supply and Demand |
Supply and demand are referred to as forces because they act in different ways and put pressure on prices to change. Price is the amount of money a buyer (a business or consumer) must give up in order to acquire something. Cost refers to the payment to factor inputs in production. |
|
|
Market |
Group of buyers and sellers of a good or service. Markets are everywhere, they exist in many forms. |
|
|
Sellers |
Determine the supply of a product |
|
|
Buyers |
Determine the demand of a product |
|
|
A competitve market |
Has many buyer and sellers, so that none has a significant impact on determining the market price. A competitive market is a market where you have an infinite number of buyers and sellers, so no one of them can influence the price of the product that is exchanged. Individuals in this market, buyers and sellers are price takers |
