Supply and Demand, Flashcards
(34 cards)
Subsitute products
demand for a product tends to decrease if the price of it’s subsitute goes down
Ex: butter, margine
What is Marginal Utility
When someone begins to value their money more than a product
Why does a demand curve always slope downward and to the right?
Numbers are inversely related. Shows how much customoers demand at each and every price
How is a decrease in supply shown?
Shift of the supply curve to the left
In the Market in Wheat,____ wanted more wheat at a lower price.
In the Market in Wheat, buyers wanted more wheat at a lower price.
What is a shortage?
When Quantity demanded is greater than the Quantity supplied.
How might a producer of pens adjust supply when prices of pens decrease?
Might produce less pens because it costs them lower prices
Number of consumers
Change in tastes and price affects (indivisual) demand
How is a change in quantity demandedshwon on a demand curve?
If movement is from point a to point b…. you get the gist….
…you should
Why are supply curves upward sloping?
Suppliers will supply different quantites of a product at the same price
What happens to prices in a shortage?
Prices has to go up to equilibrium
Demand curves always slope _____ and to the right. Because numbers are inversely related. It shows how much producers are willing to supply at each and every price.
Demand curves always slope downward and to the right. Because numbers are inversely related. It shows how much producers are willing to supply at each and every price.
Why does a supply curve always upward and to the right?
Numbers are directy related. Shows how much producers are willing to supply at each and every price
What is Equilibrium?
- Where the supply and demand curve meet
- Where both nuyer and seller profit
What does the term Supply mean?
Amount of a product offered for sale at all possible prices
Whats a surplus?
Surplus is abve the equiibrium,
Quantity supplied> Quantity demanded
(More product than wanted by buyers)
_____ exists when quantity demanded is greater than quantity supplied
Shortage exsits when quantity demanded is greater than quantity supplied
What happens to prices in a surplus?
Price has to go down to equilibrium
How is an increase in supply indicated?
higher Qs= higher price
Expectations about the future
Willingness to buy more becuase of expected future shortages would cause demand to increase; wait to buy product
Ex: iPhone 6
Supply curves always slope ______ and to the right.
Supply curves always slope upward and to the right
Schedules show in a table form, the ____ and _____ at each and every price.
Schedules show in a table form, the supply and demand at each and every price.
What is change in quantity demanded?
A change that’s graphically represented as a movement along the demand curve
What is subject’s utility?
A subject’s satisfaction
