Chapter 3 Flashcards
1
Q
Market
A
Brings together buyers and sellers to exchange G/S
2
Q
Demand
A
The amount of a product that a person is willing and able to buy during a specific period of time
3
Q
Law of Demand
A
Price increases; Quantity Demand decreases, (—-)
Price decreases; Quantity Demand increases, (—-)
4
Q
Four determinants of Demand
A
- Income
- Population size
- Taste
- Price
5
Q
Supply
A
The amount of a G/S that producers are willing and able to offer for sale at each possible price, during a specific period of time, everything else held constant
6
Q
Law of supply
A
Price increases; Quantity
Supplied increases, (—-)
Price decreases; Quantity Supplied decreases, (—-)
6
Q
Two determinants of Supply
A
- Technology/Productivity
- Price of Resources
7
Q
Productivity
A
The quantity of output per unit of labor
