Market Equilibrium Changes
... PUTTING IT ALL TOGETHER: EQUILIBRIUM How Demand & Supply Interact to Determine Prices of Goods & Services ...
... PUTTING IT ALL TOGETHER: EQUILIBRIUM How Demand & Supply Interact to Determine Prices of Goods & Services ...
Important Lecture Vocabulary and Concepts
... Slope of a straight (or curved) line Tanget to a curve Y-intercept Ray through the origin, or ray 450 line Production indifference map Chapter 2 Factors of production, or inputs Outputs Gross domestic product (GDP) Open economy Closed economy Recession Transfer payments Progressive tax Mixed economy ...
... Slope of a straight (or curved) line Tanget to a curve Y-intercept Ray through the origin, or ray 450 line Production indifference map Chapter 2 Factors of production, or inputs Outputs Gross domestic product (GDP) Open economy Closed economy Recession Transfer payments Progressive tax Mixed economy ...
Supply & Demand - Seattle Central College
... When the cost of an activity is raised people do less of the activity; When the benefit of an activity is reduced people do less of the activity. ...
... When the cost of an activity is raised people do less of the activity; When the benefit of an activity is reduced people do less of the activity. ...
Practice Exam 1
... ----------------------------------------------------------------------Label on the graph the attainable(A) and unattainable(U) area. a. What are the points on the PPC represent? _____________________ b. At point C, the opportunity cost of 60 more units of consumer goods is ____________ At point E, t ...
... ----------------------------------------------------------------------Label on the graph the attainable(A) and unattainable(U) area. a. What are the points on the PPC represent? _____________________ b. At point C, the opportunity cost of 60 more units of consumer goods is ____________ At point E, t ...
Quiz1
... Question 1. [5 marks] Suppose the market demand curve for a product is given by Qd=150-15 Pa+10Pb and the market supply curve is given by Qs = -250+10 P a+ 5Pb. a) [3 marks] What are the ranges of Pa and Pb if the equilibrium prices and quantity are positive in this market? 150-15 Pa+10Pb= -250+10 P ...
... Question 1. [5 marks] Suppose the market demand curve for a product is given by Qd=150-15 Pa+10Pb and the market supply curve is given by Qs = -250+10 P a+ 5Pb. a) [3 marks] What are the ranges of Pa and Pb if the equilibrium prices and quantity are positive in this market? 150-15 Pa+10Pb= -250+10 P ...
Section 2
... 2. You should be able to answer questions about the Production Possibilities Curve and Comparative Advantage. Section 2 1. Definitions: a. Law of Demand b. Law of Supply 2. Know how to distinguish between: a change in quantity supplied or demanded cause : change in price effect: movement along the s ...
... 2. You should be able to answer questions about the Production Possibilities Curve and Comparative Advantage. Section 2 1. Definitions: a. Law of Demand b. Law of Supply 2. Know how to distinguish between: a change in quantity supplied or demanded cause : change in price effect: movement along the s ...
Supply and Demand Test
... 13. A shift occurs when you move on the demand or supply curve. 14. Price has a big influence on both supply and demand. 15. When the price of one substitute drops the demand for a similar product will be less. 16. Increasing the price of a good is a way to reduce a shortage. 17. More sellers in a m ...
... 13. A shift occurs when you move on the demand or supply curve. 14. Price has a big influence on both supply and demand. 15. When the price of one substitute drops the demand for a similar product will be less. 16. Increasing the price of a good is a way to reduce a shortage. 17. More sellers in a m ...
ECON 202 – 2nd Quiz Key
... 1. The law of supply indicates that producers will offer more of a product at high prices than they will at low prices. 2. According to the law of increasing opportunity costs the slope of the supply curve is positive. 3. While intuitively it makes sense that a demand curve is downward sloping, the ...
... 1. The law of supply indicates that producers will offer more of a product at high prices than they will at low prices. 2. According to the law of increasing opportunity costs the slope of the supply curve is positive. 3. While intuitively it makes sense that a demand curve is downward sloping, the ...
Chapter 21 Worksheet
... 1. What do we call the desire, willingness, and the ability to buy an item? 2. What is a demand schedule? 3. What is a graph that shows the amount of a product that will be bought at various prices? 4. What refers to the concept that our satisfaction decreases as we consume additional items? 5. What ...
... 1. What do we call the desire, willingness, and the ability to buy an item? 2. What is a demand schedule? 3. What is a graph that shows the amount of a product that will be bought at various prices? 4. What refers to the concept that our satisfaction decreases as we consume additional items? 5. What ...
The Law of Supply - The Big L | James 1:2-4
... 5) What does a positive sloping supply curve show us? ...
... 5) What does a positive sloping supply curve show us? ...
Supply and demand
In microeconomics, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.The four basic laws of supply and demand are: If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.↑