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Flashcards in Supply and Demand Quiz Deck (27):
0

Law of Demand

If the price of a good increases, the quantity demanded decreases
If the price of a good decreases, the quantity demanded increases

1

Changes in Demand

Prices Related Goods
Income
Expectations
Number of Buyers
Preferences

2

Law of Supply

If the price of a good increases, the quantity supplied increases
If the price of a good decreases, the quantity supplied decreases

3

Changes in Supply

Prices of Related Goods
Prices of Resources be Other Inputs
Expectations
Number of Sellers
Productivity

4

Law Market Forces

When there is shortage, price rises
When there is surplus, price falls

5

Increase Demand

Price rises
Quantity increases

6

Decrease Demand

Price falls
Quantity decreases

7

Increase supply

Price falls
Quantity increases

8

Decrease supply

Price rises
Quantity decreases

9

Increase demand and supply

Price cet. par.
Quantity increases

10

Decrease demand and supply

Price cet. par.
Quantity decreases

11

Increase demand and decrease supply

Price rises
Quantity cet. par.

12

Decrease demand and increase supply

Price falls
Quantity cet. par.

13

Shortage

Quantity demanded exceeds quantity supplied

14

Surplus

Quantity supplied exceeds quantity demanded

15

Market equilibrium

Quantity demanded equals quantity supplied

16

Equilibrium quantity

Quantity bought and sold at equilibrium price

17

Equilibrium price

Price at which quantity demanded and supplied is the same

18

Supply

Relationship between quantity supplied and the price of a good

19

Demand

Relationship between quantity demanded and the price of a good

20

Market demand

Sum demand of all buyers market

21

Market supply

Sum supply of all buyers market

22

Demand Increases

Price substitute rises
Price complement falls
Price of a good or income is expected to rise in the future
Income increases
Number buyers increases

23

Demand Decreases

Price substitute falls
Price complement rises
Price of good or income is expected to fall in the future
Income decreases
Number buyers decreases

24

Increase Supply

Price substitute production falls
Price complement production rises
Resource or other input price falls
Number sellers increases
Productivity increases

25

Decrease Supply

Price substitute in production rises
Price complement in production falls
Resource or other input price rises
Price good is expected to rise
Number sellers decreases
Productivity decreases

26

Predicting price Changes Questions

Does the event influence supply or demand?
Does the event increase or decrease demand or supply?
What are the new equilibrium price and quantity? How do they changed?