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Econ Supply&Demand
Economics
Question | Answer |
---|---|
surplus | when the price is set higher than the point where supply and demand meet |
elastic demand | the amount buyers want to buy changes a lot |
shortage | when the price is set lower than the point where supply and demand meet |
price effect | a change in what people will buy because a change in price |
supply curve | consumers get more of a product by paying higher prices |
equilibrium | the name of the point where supply and demand meet |
the demand for a good is elastic when | the amount buyers want to buy changes a lot |
price ceiling | when the government sets a cap on what price businesses can change |
consumers get more of a product by | paying higher prices |
equilibrium is important because | it balances the amounts demanded and supplied |
supply elasticity | measure of the way in which quantity supplied responds to a change in price |
price effect | change in price that creates a shift in demand along the demand curve |
substitutes | products that can be used in place of other products |
microeconomics | deals with behavior and decision making of small units |
inelastic | when price effect has a small effect |
equilibrium price | no surplus or shortage, all goods and services are bought and sold |
complements | products the tend to be used together |
invisible hand | actual price and quantity sold is determined in market |
what is the law of demand | price goes up and people buy less; vice versa |
what is the law of supply | offer more for sale at a high price; vice versa |
two things that can cause a change in demand | income and expectations |
two things that can cause a change in supply | expectations and change in cost in production |