Microeconomics: Chapter 4

9 cards

The Market Forces Of Supply And Demand


 
  
Created Sep 27, 2012
by
meghann_katerine

 

 
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1
Define a market.
 
A group of buyers and sellers of a particular good or service.
2
What is a competative market?
 
One in which there are so many buyers and so many sellers that each ahs a negligable impact...
3
What is the law of demand?
 
The claim that, other things equal, the quantity demanded of a good falls when the price of...
4
Define quantity demanded.
How does it differe from a change in demand?
 
The amount of  the good that buyers are willing and able to sell.
Quantity demanded...
5
Name at least 3 demand curve shifters.
 
Changes in:
-The number of buyers
-Income
-Prices of related goods
-Tastes...
6
Name at least 3 influences on supply.
 
-Price of the good
-Prices of resources needed to produce it
-Prices of related...
7
If the price of a good or service increases then the quantity supplied will:
A) Increase
 
A- Increase
*Increase in price is an incentive to increase production
8
Define equilibrium
 
When price has reached the level where quantity supplied is equal to quantity demanded.
9
When is there a surplus?
 
When quantity supplied is greater than quantity demanded.

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