1 Flashcards
Market
Any place or mechanism that brings buyers and sellers together with the possibility of transacting with each other.
Demand
Is a relation indicating the quantity that will be purchased at any given price over a given period of time all other influences on the buyers being constant
2 variables for demand
The price
the quantity demanded(quantity purchased)
Influence of quantity demanded
The price Income tastes and preferences The prices of other goods Weather conditions
Law of demand
Other influences remaining constant, less is purchased when. The price rises, more is purchased when the price falls.
Quantity purchased=
Quantity demanded
Supply
Relation indicating the quantity that will be offered at any given price over a given period of time
Two variables associated with supply
The price
The quantity supplied
When the price goes up will more or less be supplied?
More supplied
What is a change in demand?
Change in quantity demanded at any given price
What changes demand?
Tastes and preferences Income Number of buyers Price of related goods Expectations Taxes and subsidies Regulations Weather conditions
What shifts supply
Number of suppliers Level of technology Input prices The prices of alternative supply opportunities Supplier expectations Taxes and subsidies Regulations Weather conditions
Utility
Is simply the satisfaction you get from consuming a good or service, or from participating activity l.
According to your professor
True
Would demand change if price of Doritos increased
No
