Topic 3, Lesson 7-8 Flashcard

Front

What is equilibrium?

Back

When supply equals demand

Front

Where do you find equilibrium on the graph?

Back

The intersection of supply and demand curves

Front

What is the problem of shortage?

Back

Demand exceeds supply

Front

What will these customers have to do in a shortage?

Back

Wait in lines

Front

If you were running the pizzeria and you noticed long lines, what would you do?

Back

Raise the price

Front

Other factors that reduce supply can do what?

Back

Raise prices

Front

In the market for cars, what can shift the supply curve to the left? Options: Increase in production costs, Decrease in production costs, Increase in technology, Decrease in taxes

Back

Increase in production costs

Front

When demand increases, what happens to equilibrium price and quantity?

Back

Both increase

Front

As demand falls, how does the demand curve shift?

Back

To the left

Front

What can also lead to a decrease in consumer demand? Options: Increase in income, Change in preferences, Decrease in price, Increase in population

Back

Change in preferences