Economics Flashcard

Front

What is the law of demand?

Back

As price increases, quantity demanded decreases.

Front

What is the law of supply?

Back

As price increases, quantity supplied increases

Front

What happens to the demand curve when there is an increase in consumer income?

Back

It shifts to the right

Front

Which of the following factors does NOT shift the supply curve? Technology, Number of sellers, Consumer preferences, Production costs

Back

Consumer preferences

Front

What is equilibrium price?

Back

The price at which quantity demanded equals quantity supplied

Front

If the price of a substitute good increases, what happens to the demand for the original good?

Back

It increases

Front

What is a surplus in the market?

Back

When quantity supplied exceeds quantity demanded

Front

What is a shortage in the market?

Back

When quantity demanded exceeds quantity supplied

Front

Which of the following is an example of a non-price determinant of demand? Price of the good, Consumer income, Production technology, Number of sellers

Back

Consumer income

Front

What effect does a technological advancement in production have on the supply curve?

Back

Shifts it to the right