Unit 2 - Supply & Demand Flashcards

Front

Price controls: Ceiling, Floor, Surplus, Shortage

Back

Ceiling = max price, Floor = min price, Surplus from floor, Shortage from ceiling

Front

Suppliers expect price rise next year

Back

Supply curve shifts left this year

Front

Law of Demand

Back

Lower price = more quantity demanded

Front

Equilibrium Price and Quantity

Back

$3.00, 2,000

Front

Market Equilibrium Definition

Back

Supply = Demand; Prices Stable

Front

Change in Quantity Demanded vs Change in Demand

Back

Change in quantity demanded is movement along existing demand curve. Change in demand creates a new demand curve

Front

Equilibrium

Back

Producers and consumers agree on a price

Front

Price of lamps increases what happens to quantity supplied?

Back

Quantity supplied increases

Front

Amount consumers willing and able to buy at a price

Back

Quantity demanded

Front

What is the relative elasticity of demand for toothpaste?

Back

Inelastic - low-cost necessity