blehhhhhhhhhhhhhhh Flashcards
(23 cards)
demand
a consumers desire ability and willingness to buy a good or service at a series of prices
quantity demand
a consumers desire ability and willigness to buy a good or a service at a paricular prices
law of demand
when prices go up demand goes down
demand schedule
a table that shows the quantity demanded at each price
supply
a producers ability and willing ness to supply a good or service at a serioes of prices
quantity supplied
the amount that producers supply on the store at a particular price
law of supply
if prices goes up supply goes up if prices go down supply goes down
supply schedule
a table which shows how much a producers will supply at a series of prices
shortage
when QD>QS
surplus
when QD<QS
Market equilibrium
when there is neither a surplus or shortage
elastic demand
when consumers are very sensitive to a change in price
- for example they respond to a price increase with a large decrease in how much they choose to buy
inelastic demand
when consumers are not so sensitive to a change in price
- for example they respond to a price increase with a small decrease
price ceiling
- the max prices that can be charged for a good service so that consumers can afford it
- it is set below equilibrium price
- rent controlled apartment
price floor
the minimum price for a product in order to protect the interest of suppliers
complementary good
a product that goes with another
subsitute goods
when product replaces another
what are factors that cause a change in demand?
changes in taste, population, income and prices of substitute or complementary goods
what are the factors that cause a change in supply?
Price of goods productions and conditions
how would you describe a demand curve? a supply curve?
a consumers desire ability and willingness to buy a good or a service at a price
How does the curve shift in response to changes in demand? Changes in supply?
supply would go up while demand goes down
Who do price ceilings benefit? Price floors?
the rpice ceiling benefit helps workers and suppliers at labor
what determines if a product is elastic or inelastic?
Depending on whether it is a want or need?
