Demand and Supply updated

The Law of Supply states that the curve will rise from the bottom ____________ to the top RIGHT

These can cause changes in SUPPLY: Input costs, susidies, government policies, Excise Taxes, and

What is the term for the additonal cost of producing one more unit called?

All of the following are factors that affect Elasticity EXCEPT

The amount of money the comapnay receives by selling its goods is called...

Medicines are the best example of INELASTICIY.

Non-Price determinants of Demand include normal goods, consumer expectations, demographics, changes in taste, and

the can be no movement along a supply curve if there are changes in price, higher input costs, or lower input costs.

All Things Held Constant, used when viewing a demand schedule or graph to show that other factors are not playing a role

Rationing is the system of allocating goods and services using any criteria including price

When price is a factor in your decsion-making process and consumers react to these changes, this occurs

When you have a percent (%) change in demand equal to the percent (%) change in price you have UNITARY ELASTICITY.

A maximum price that can legally be charged is also called a:

adding more workers as total output rises but profit falls is called

The main difference between a command economy and a free market exonomy is price is determined by supply and demand.

What is the term: the relationship between labor, measured by number of workers in a factory and number of items made

when a sudden shortage of a good occurs this happens

Why would a company create a MARKET SUPPLY CURVE?

The price system is free.

To draw either a Demand Curve or a Supply Curve you must first have a __________________________.

Disequilibrium is a benefit to both consumers and suppliers.

Over time, a shortage or a surplus will

Without prices we would have to resort to what type of economic system?

you get this when you add FIXED COSTS to VARIABLE COSTS

The Law of Demand states that QD will slope from the top LEFT to the bottom ________.

If market price is so low that the TR is less than TC but the company is producing at MR=MC, & losing $, this occurs:

This occurs when businesses want to subvert the tax system/governmental controls but still offer goods for sale...

the quantity of goods a firm has for sale on hand is called INVENTORY

The point at which Demand and Supply intersect is called:

Prices provide incentives