Chapter 4 Market Forces Of Supply And Demand Flashcards
(11 cards)
What does demand mean
Willingness to buy
A market is what
A collection of buyers and sellers
What is demand
Demand is the entire schedule or curve
Demand refers to the whole demand schedule or demand curve, not just a point on the curve.
What does the demand curve or schedule represent
It represents all the price quantity combinations that are acceptable to consumers.
With regards to the demand curve increase sales that occurred due to a price cut are not referred to as
An increase in demand
There is, of course, an increase in the quantity demanded, but this is not an increase (or shift to the right) in demand itself.
What is quantity demanded
Quantity demanded is a point on the demand curve.
When there is a change in price, quantity demanded changes, but demand itself does not change.
What does supply referred to
The entire supply schedule or curve
Supply refers to the whole supply schedule or supply curve, not just a point on the curve.
For a supply to shift, what takes place
The underlying factors that are held constant in plotting a supply curve must change.
What does it mean by quantity supplied
It is a point on the supply curve. When there is a change in price, the quantity supplied changes, even though the supply curve itself does not shift. The quantity supplied a particular price is the mount the sellers are willing to sell at that price.
What does supply mean
Willingness to sell
What is the law of demand
The claim that the quantity demanded of a good falls when the price of the good prizes, other things equal
