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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

How does taxes and subsides affect supply

The supply of the less taxes or subsides product will increase