Week 2- Market Forces of Supply and Demand Flashcards Preview

Eco 201 > Week 2- Market Forces of Supply and Demand > Flashcards

Flashcards in Week 2- Market Forces of Supply and Demand Deck (15):
1

There's no shortage of scarce resources?

Yes, since prices adjust to eliminate shortage.

2

In competitive market, buyers and sellers...

Are price takers.

3

Charge more?

Buy from someone else.

4

In market economy, supply and demand

Determines the price.

5

Supply and demand runs the economy. They can be used to

Predict the impact of the economy of different events.

6

Market clearing price aka

Equilibrium.

7

Quantity demanded of a good-

Is the amount that buyers are willing to purchase.

8

Competitive market have so many sellers that-

Each has a negligible impact on the price of the product.

9

Demand schedule-

Relationship between price and quantity demanded.

10

Supply schedule-

Shows quantity supplied at a range of different prices.

11

Perfect competition-

Highest form of competition.

12

Demand of a good determined by-

Those who buy the goods.

13

In competitive market, each sellers has limited control over the price since-

Other sellers are offering similar products.

14

Supply curve-

Line that relates prices of a good and quantity supplied of that goods.

15

Demand curve-

Line that relates the price of a good and quantity demanded.