Lesson 9 Flashcards
1
Q
the law of supply
A
price up
means
supply up
2
Q
Factors determining supply
A
tax
technology
productivity
price
3
Q
Consumer surplus
A
the sum of all the extra benefit consumers in a market get from buying and consuming a good/service
4
Q
Total surplus
A
consumer surplus + producer surplus
5
Q
What does the E on graphs stand for?
A
equilibrium
6
Q
What happens when there is excess supply?
A
price fall
7
Q
What happens if there is excess demand?
A
price rise
8
Q
Market equilibrium
A
When markets clear
When demand meets supply
