Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Econ 211 > Chapter 2 > Flashcards

Chapter 2 Flashcards

1
Q

Derived demand

A

Demand for a good that is derived from the production of another good (cereal -> corn)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Direct demand

A

Demand for a good that comes from buyers directly consuming

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Law of demand

A

Inverse relationship between price of a good and the quantity demanded (lower price of corn = more demanded)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Law of supply

A

Positive Relationship between price and quantity supplied (higher price of corn = more supplied)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Excess supply

A

Supply exceeds demand at a given price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Excess demand

A

Demand exceeds supply at a given price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Increase in demand + unchanged supply curve = ?

A

Higher equilibrium price and larger equilibrium quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Decrease in supply + unchanged demand curve = ?

A

Higher equilibrium price and smaller equilibrium quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Decrease in demand + unchanged supply curve = ?

A

Lower equilibrium price and smaller equilibrium quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Increase in supply + unchanged demand curve = ?

A

lower equilibrium price and larger equilibrium quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Perfectly inelastic demand

A

Price elasticity if demand = 0

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Inelastic demand

A

Price elasticity if demand between 0 and -1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Unitary elastic demand

A

Price elasticity if demand = -1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Elastic demand

A

Price elasticity if demand -1 to -1000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Perfectly elastic demand

A

Price elasticity if demand = -infinity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Choke price

A

Price at which quantity demanded = 0

17
Q

Income elasticity of demand

A

% change of Qd to the % change in income.

How much buying is affected by changes in income

18
Q

Cross-price elasticity of demand

A

How much the demand for a good is influenced by price changes in another good

19
Q

Demand substitutes

A

The demand for one good is inversely related to the demand of another good

If people are buying more A, the are buying less B

20
Q

Demand compliments

A

The demand for two products is positively related

If people are buying A, they will also be buying B

21
Q

Price elasticity of supply

A

How the change in Qs is related to changes in price

22
Q

Long-run demand curve

A

Demand period where consumers can fully adjust purchase decisions to price changes

Over the long run all customers will care about price

23
Q

Short-run demand curve

A

Time horizon in which customers don’t fully adjust to changes in price

Some customers don’t change to price movements right away

24
Q

Long run supply curve

A

Time period where producers can fully adjust to price movements

25
Q

Short run supply curve

A

Time period where producers cannot fully adjust to changes in price

26
Q

Durable goods

A

Goods such as automobiles and airplanes that provide valuable services over many years

Econ 211 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions