Supply and Demand Flashcards
What is a competitive market
A competitive market is a term in economics that refers to a marketplace where there are a large number of buyers and sellers, and no single buyer or seller can affect the market.
What is Supply
Supply is the amount of a certain good that a seller is willing and able to provide to buyers.
What is Demand
Demand isan economic concept that relates to a consumer’s desire to purchase goods and services and willingness to pay a specific price for them.
What is a Demand Schedule
A demand schedule is a table that shows much of a good or service consumers will want to buy at different prices.
What is the law of demand
The law of demand is a fundamental principle of economics that states that at a higher price, consumers will demand a lower quantity of a good.
When price alone changes, there is movement along a demand curve
A. True
B. False
True
What are the five factors that shift the demand curve
- Changes in the prices of related goods or services.
- Changes in income.
- Changes in tastes.
- Changes in expectations.
- Changes in the number of consumers.
What is a supply schedule
A supply schedule is a table that shows how much of a good or service would be supplied at different prices.
What are the five factors that shift the supply curve.
- Input prices
- The prices of related goods and services
- Technology
- Expectations
- The number of producers
What is a Market
A market refers to a place or a mechanism where buyers and sellers come together to engage in the exchange of goods, services, or resources.
What are the five characteristics of a competitive market
- Many buyers and sellers
- Homogeneous products
- Perfect information
- Free entry and exit
- Price takers
What is the law of supply
The law of supply is an economic theory that predicts how the price of goods and services affects their supply. It says that as prices rise, businesses will increase the amount of goods and services that they make available.
