Term
| A supply curve has what kind of slope? |
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Definition
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Term
| If there are lower prices then there is less what? |
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Definition
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Term
| Firms fundamentally are what? |
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Definition
| Those who maximize profit. |
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Term
| What is an increase in supply? |
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Definition
| Producers make available more of a given good at any price or at any price regardless of the price of said good. |
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Term
| How can you tell there is an increase in supply? |
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Definition
| When the same price for a good is offered later, but more of said good are made available by the producer for said same price. |
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Term
| How can you tell there is a decrease in supply? |
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Definition
| When the same price for a good is offered later, but less of said good are made available by the producer for said same price. |
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Term
| What is a decrease in supply? |
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Definition
| Producers produce less of the good at any price or regardless of price. |
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Term
| What are Determinants of Supply? |
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Definition
| Variables held constant when a supply curve is drawn. |
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Term
| What are the variables held constant when a supply curve is drawn? |
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Definition
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Term
| What are Resource prices? |
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Definition
| Anything that makes up the price for land, labor, capital, or the entrepreneur. |
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Term
| What makes up most of the costs of production? |
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Definition
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Term
| What are examples of resource prices? |
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Definition
Rental Rates
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Wages
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Interest Rates
---
Energy Costs
--- |
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Term
| What happens when a supply curve shifts left? |
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Definition
| There is a decrease in quantity supplied. |
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Term
| What happens when a supply curve shifts right? |
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Definition
| There is an increase in quantity supplied. |
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Term
| What does a point on a supply curve show? |
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Definition
| The quantity of goods a producer is willing to make available at a particular price at a particular time. |
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Term
| Supply increases if knowledge of how to use capital is more what? |
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Definition
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Term
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Definition
| Manufactured aids to production |
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Term
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Definition
| Knowledge of how to use capital. |
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Term
| Why does advanced technology help to increase supply? |
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Definition
| It allows for supply production to be more efficient. |
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Term
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Definition
| Costs of production that are government tributes. |
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Term
| What relationship does supply have with taxes? |
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Definition
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Term
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Definition
| An incentive to produce, that are provided by the government. |
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Term
| If A and B have an inverse relationship, then what happens when "A" increases? |
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Definition
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Term
| What are examples of Supply Determinants? |
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Definition
Resource Prices
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Technology
----
Taxes
----
Subsidies
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Number of Sellers
--- |
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Term
| What kind of relationship do the number of sellers have with supply? |
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Definition
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Term
| If A and B have a direct relationship, then what happens when "A" increases? |
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Definition
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Term
| The intersection of the demand curve and the supply curve represents what? |
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Definition
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Term
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Definition
| When quantity demanded equals quantity supplied. |
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Term
| What does a point on a demand curve illustrate? |
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Definition
| The quantity of goods a consumer is willing to purchase at a particular price at a particular time. |
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Term
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Definition
| The process by which a market gets to equilibrium. |
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Term
| When a market reaches equilibrium what does it become? |
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Definition
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Term
| What is the absence of equilibrium? |
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Definition
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Term
| What is market stability? |
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Definition
| The tendency of a market to move toward equilibrium rather than away from it. |
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Term
| What price will create an equilibrium? |
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Definition
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Term
| When quantity supplied is greater than quantity demanded what is created? |
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Definition
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Term
| How does one solve the problem of surplus? |
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Definition
| They allow the price of a product to decrease. |
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Term
| As price falls producers produce what? |
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Definition
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Term
| As price increases producers produce what? |
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Definition
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Term
| As price increases consumers purchase what? |
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Definition
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Term
| As price falls consumers purchase what? |
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Definition
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Term
| Price and Quantity Supply have what kind of relationship? |
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Definition
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Term
| Price and Quantity Demanded have what kind of relationship? |
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Definition
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Term
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Definition
| When quantity supplied is less than the quantity demanded. |
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Term
| How does one solve the problem of a shortage? |
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Definition
| They allow the price of the good in question to slowly increase. |
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Term
| What are the two forms of disequilibrium? |
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Definition
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Term
| A demand curve has what kind of slope? |
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Definition
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Term
| When a demand curve shifts right? |
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Definition
| Increases in quantity demanded |
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Term
| When a demand curve shifts left? |
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Definition
| Decreases in quantity demanded |
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Term
| If you ever get confused about equilibrium, you should think about the mechanisms involved in what? |
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Definition
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Term
| What are the three analytical tools of economics? |
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Definition
Language
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Graphics
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Mathematics
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Term
What Does "P" Mean in this Demand Function?
D:Q=A-BP |
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Definition
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Term
What kind of function is this?
D:Q=A-BP |
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Definition
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Term
What Does "A" stand for in this Demand function?
D:Q=A-BP |
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Definition
| The quantity a consumer would take if the product is free. |
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Term
| What Does Q mean in a Demand Function or Supply Function? |
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Definition
| Quantity Demanded or Quantity Supplied Respectively. |
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Term
| How do you find an equilibrium price when you are provided with a demand and supply function? |
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Definition
| Set the demand and supply functions equal to one another. |
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Term
| How do you find Q in a Supply or Demand Function? |
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Definition
| Plug in the equilibrium price and solve for Q. |
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Term
| What does a Supply Function Look like? |
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Definition
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Term
| When price is higher than equilibrium price one can expect what? |
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Definition
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Term
| When price is lower than equilibrium price one can expect what? |
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Definition
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Term
| How do you calculate the numerical magnitude of a surplus? |
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Definition
Calculate
Quantity Supplied
Minus
Quantity Demanded |
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Term
| How do you calculate the numerical magnitude of a shortage? |
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Definition
Calculate
Quantity Demanded
Minus
Quantity Supplied |
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Term
| How do you find the price if provided with the quantity? |
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Definition
Insert the value of Q
---
Solve for P
--- |
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Term
|
Definition
Total Revenue
Minus
Total Cost |
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Term
| Consumer Income and Quantity Demanded for a Normal Good have what type of relationship? |
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Definition
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