Price theory Flashcards
What is the law of demand
higher the price=lower the demand
less people will be able to afford it
what is demand?
is the rate in which consumers want to buy a product.
what does the demand schedule show?
Shows the needs and wants of consumers at specific prices
What are things that can change the demand of a product
product price
amount of money consumers have
Advertising conditions
competition
When demand decreases the curve shifts?
to the left
What is the law of supply
when the price of a product increases the supply increases
What does supply schedule show?
Amount of goods and services suppliers are willing to supply at a given price.
what are things that change the supply of a product?
price of product
cost of production
method of production
number of producers
