demand, supply and equilibrium

Question 1

market price

Answer 1

price at which buyers and sellers conduct transactions
perfectly competitive market: no one is big enough to influence it

Question 2

quantity demanded, demand schedule and demand curve

Answer 2

amount of good buyers are willing to purchase at a given price
a table that reports the Qd at different prices
plots the relationship between the total Qd and the market price (sum of all individual curves)

Question 3

shifts in the demand curve

Answer 3

tastes and preferences
income
availability and price of related goods (subs or complements)
nb and scale of buyers
buyer’s expectations

Question 4

quantity supplied, supply schedule and market supply curve

Answer 4

amount of goods sellers are willing to sell at given price
table that reports the Qs at different prices
plots the relationship between total Qs and market price

Question 5

shifts in the supply curve

Answer 5

input prices
tech
nb and scale of sellers
sellers’ expectations

Question 6

competitive equilibrium

Answer 6

competitive equilibrium price and competitive equilibrium quantity

Question 7

excess demand (shortage) vs excess supply (surplus)

Answer 7

consumers want more than suppliers provide at given price (over)
suppliers provide more than consumers want at a given price (under)

Question 8

shift both curves: both demand and supply curve increase

Answer 8

change in Ep is indeterminate
Eq increases

Question 9

shift both curves: demand increases and supply decreases

Answer 9

Ep increases

Question 10

shift both curves: demand decreases and supply increases

Answer 10

Ep decreases

Question 11

shift both curves: demand and supply decrease

Answer 11

change in Ep is indeterminate
Eq decreases