Flashcards in Lecture 4 Deck (21)
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1
What axis does the quantity go on?
The horizontal axis
2
What is the demand curve?
The relationship between price and quantity demanded
3
What is tastes and preferences?
Things that make the demand curve change based on things like tempature, some one dying and their belongings going up, fads.
4
What is a substitute
Something that will substitute for something else
I.e coke Pepsi
Gatorade poweraid
5
What is a compliment?
Things that work well together
I.e
Peanut butter and jelly
Hot dogs and hot dog buns
6
As your income goes up what happens to a normal good?
It goes up
7
As your income goes up what happens to an inferior good?
Go down
8
What is a normal good?
Things you want to have more of or need to have/
9
What is an inferior good?
Something that's cheap like ramen
10
What happens as the number of consumers goes up?
The demand goes up
11
What is expected future prices?
The expectation that things are cheaper today than tomorrow so you buy today
12
Which axis does the price go
The y axis
13
What are the factors of demand
Substitutes
Compliments
# of consumers
Taste preference
Income
Normal and inferior goods
Expected future prices
14
What does it mean to horizontally aggregate
Take all the graphed lines of either the supply or demand and add together to get the totally of everything and graph
15
What is a decrease in supply?
Shift to left
16
What is an increase of supply?
A shift to the right
17
If an input gets more expensive supply will
Decrease
18
Technologically innovation does what to supply?
Increase it
19
If wages go up what happens to supply?
It goes down
20
If the #of firms increases what happens to supply
Supply increases
21
