Supply, Demand, and Market Equilibrium

Distribution is based on prices and costs nothing to administer.

The number of units, or amount, of a product that consumers will buy in a given time period is

With higher marginal cost there is no control over the price, the only solution is to

An increase in the cost of an input will cause

The law of demand states that there is a(n)

When quantity supplied is not equal to quantity demanded the market is in

Demand that is affected by price is

What would cause an increase in quantity of supply & what would happen to the supply curve?

Which of the following are complements for hot dogs

Diversity of goods and services

Inflation generally rises prices,

Change in price of a good or service leads to

Things like income, preferences, expectations and prices of related products are called

When supply falls at each price the supply curve

What are substitutes and what do they do to demand?

What are normal goods?

The Law of Supply states there is a

Government stipulates a maximum price that can be legally charged for a good or service is

Markets in which goods and services are exchanged are

Change in price of a good or service leads to

If technology decreases production costs and increases supply at all price levels the effect is

Is the capital market an input or output market?

The relationship between the number of suppliers in a market and the market supply of a good is

Which two factors would producers consider when deciding where to locate?

A government payment that supports a business or market is called

When quantity supplied and quantity demanded are the same it is called

Economists say that without government interventions the market will

Central planners restrict production to limit cost which causes less variety.

A tax on the production or sale of a good or service which decreases supply is called

Economists say that a market will tend toward equilibrium, which means price and quantity

If the federal government banned the import of electronics the supply curve would

Change in determinants of demand leads to

What are some determinants of supply?

What are Inferior goods?

_______ increases supply, shifting the entire supply curve.

Excise taxes cause supply to decrease at all levels shifting the supply curve

The government decides what goods are produced and sets prices.

When quantity demanded exceeds quantity supplied at the current price there is a(n)

Subsidies generally decrease costs and

Expectations of higher prices

Demand curves slope downward because

Markets in which resources - labor, capital, and land - used to produce products, are exchanged

What is inflation?

Prices are responsive to market conditions

When the quantity demanded in a market is more than the quantity supplied there is