3 Flashcards
What is demand?
The amount of a good/service that consumers are willing and able to buy at different prices
What is quantity demanded?
the amount buyers are willing and able to buy at a specific price
What is the law of demand?
If the price goes up, demand is goes down, price goes down, demand goes up
negative correlation
What does a demand curve look like?
Down
What is the difference between a change in quantity demanded and a shift in demand?
one moves the dot, one moves the line
What factors shift the demand curve? In which direction do they shift it?
income, population, price of subs, price of comps, expectations, tastes/preferences, shocks
What is supply?
the amount of good/service willing to supply at different prices
What is quantity supplied?
at a specific price amount willing to supply
What is the law of supply?
higher the price, the higher supplied, lower the price, the lower supplied
What does a supply curve look like?
up
What is the difference between a change in quantity supplied and a shift in supply?
dot vs line
What factors shift the supply curve? In which direction do they shift it?
technology/price of inputs, taxes, expectations, numbers of firms, entry or exit of producers, opportunity costs, shocks
