blehhhhhhhhhhhhhhh Flashcards
demand
a consumers desire ability and willingness to buy a good or service at a series of prices
quantity demand
a consumers desire ability and willigness to buy a good or a service at a paricular prices
law of demand
when prices go up demand goes down
demand schedule
a table that shows the quantity demanded at each price
supply
a producers ability and willing ness to supply a good or service at a serioes of prices
quantity supplied
the amount that producers supply on the store at a particular price
law of supply
if prices goes up supply goes up if prices go down supply goes down
supply schedule
a table which shows how much a producers will supply at a series of prices
shortage
when QD>QS
surplus
when QD<QS
Market equilibrium
when there is neither a surplus or shortage
elastic demand
when consumers are very sensitive to a change in price
- for example they respond to a price increase with a large decrease in how much they choose to buy
inelastic demand
when consumers are not so sensitive to a change in price
- for example they respond to a price increase with a small decrease
price ceiling
- the max prices that can be charged for a good service so that consumers can afford it
- it is set below equilibrium price
- rent controlled apartment
price floor
the minimum price for a product in order to protect the interest of suppliers
