unit 2 supply & demand

Question 1

incentives

Answer 1

benefits or cost of action that influence peoples decison and behavior

Question 2

Ceteris Paribus

Answer 2

all other things being equal

Question 3

supply

Answer 3

amount of a resource available to give

Question 4

demand

Answer 4

consumers desire and willingness to buy a product or service at a given period over time

Question 5

law of supply

Answer 5

increase in price results in increase of product or service.

Question 6

law of demand

Answer 6

consumers will get more at a lower price

Question 7

Quantity Demanded

Answer 7

price is the factor

Question 8

Quantity Supplied

Answer 8

number of goods or services that suppliers will produce and sell at a given market price.

Question 9

Equilibrium Price (aka market-clearing price)

Answer 9

a balance of demand and supply

Question 10

Equilibrium Quantity

Answer 10

no shortage or surplus of a good in the market

Question 11

Demand Curve (Schedule–Individual and Market)

Answer 11

graph that shows how demand changes with price.

Question 12

Supply Curve (Schedule–Individual and Market)

Answer 12

graph that shows how a change in price of a good/service affects the quantity a seller supplies.

Question 13

marginal benefit

Answer 13

additional benefit you get from one more unit

Question 14

price control

Answer 14

government regulation about maximum price of a good

Question 15

surplus

Answer 15

amount of something left over (having extra of a good)

Question 16

shortage

Answer 16

not having enough of a good

Question 17

dead weight loss

Answer 17

difference in production and consumption

Question 18

quantity control

Answer 18

checks products for accuracy

Question 19

Tariffs/Taxes/Subsidies impact

Answer 19

Tariffs: taxes on imported goods
Taxes: percent of a price of good (fee)
Subsidies impact: payment made to firms/consumers to encourage increase in output

Question 20

demand price

Answer 20

price people are willing to pay for goods and services when particular amount or quantity is available

Question 21

supply price

Answer 21

lowest price at which a given amount will be offered under given conditions

Question 22

Determinants of Demand

Answer 22

5 factors that effect demand: price, income, price of related goods, complimentary purchase , taste or preferences, subsities

Question 23

Determinants of supply

Answer 23

technology, number of suppliers, suppliers expecations, feedbacl from consumers, increased tax, high wage

Question 24

Elasticity (of Demand/of Supply/Price/Cross Price/Income)

Answer 24

an economic concept used to measure the change in the aggregate quantity demanded of a good or service in relation to price movements of that good or service

Question 25

elastic

Question 26

inelastic

Answer 26

when the demand of a product does not change as much as the price

Question 27

income Effect

Answer 27

change in demand based on what consumers can afford

Question 28

Substitution Effect

Answer 28

decrease in sales due to buying the cheaper alternative

Question 29

related goods

Answer 29

subsitutes or compliments of a good

Question 30

law of diminishing Marginal utility

Answer 30

for every additional unit you buy the less satisfaction you recieve

Question 31

total revenue

Answer 31

amount pf money brought in from selling goods and services

Question 32

total expenditure

Answer 32

The sum of the price paid for one or more products or services multiplied by the amount of each item purchased.