Supply, Demand and Price Review

Excess Supply

When quantity supplied is more than quantity demanded

The price of paper is expected to drop in the future, what shift happens and what does this do to the equilibrium price?

The financial and opportunity costs consumers pay when searching for a good or service

How is the law of supply demonstrated on a supply curve?

A shift in either supply or demand can lead to a state of disequilibrium

Poor weather leads to bad apple harvests. What shift happens and what does this do to the equilibrium price?

How is the law of demand demonstrated on a demand curve?

What is a problem that a price floor can cause?

A maximum price that can legally be charged for a good or service

The government can't affect price in any way

The measure of how quantity supplied or demanded reacts to a change in price

The price of steel has risen dramatically what shift happens and what does this do to the equilibrium price of cars?

A minimum price for a good or service

What is the law of supply?

The point at which quantity demanded and quantity supplied are equal

The price of halloween candy decreases. This only the impacts quantity demanded and quantity supplied.

Describes any price or quantity not at equilibrium

What is the law of demand?

Consumers buy more of a good when its price decreases and less when its price increases

A sudden shortage of a good

Excess Demand

When quantity demanded is more than quantity supplied

A minimum price an employer can pay a worker for an hour of labor

A popular star is on the cover of a magazine. What shift happens and what does this do to the equilibrium price?

Tendency of suppliers to supply more goods at a higher price