Ch 3+4 econ Flashcards
A CD…
-set rate of interest over time
-protected by FDIC
-has a minimum deposit
Ways a bank might lure u into purchasing a Cd
-interest increases
-perks(prizes and memberships)
Is a CD taxable
Yes
Ex dividend
The date in which u won’t benefit from a dividend
Value is determined…
In the eyes of the consumer
Demand up
Price down
Demand down
Price up
Slope of demand
Downward curve
Las of demand
There is an inverse relationship between price and quantity demand
Substitues
Are cheaper goods than the original
Graph: a change in quantity demanded
Moves around on line
Graph: an increase in demand
Line shifts to the right
Graph: an increase in demand
Line shifts over to the left
Complementary goods
Goods that go together and can’t be substituted
As you continue to consume something
The utility diminishes
Demand for a product when the price decreases:
Demand stays the same, but the quantity demanded increases
Price transmits
What ppl are willing to pay and perceived value by seller
Shifters of demand
Preference, # of consumers, price of related goods, compliments, income, expections
Price gouging
Raising prices extremely higher than necessary during crisis
Law of supply
The higher the price willing to be paid, other things held constant, the greater the quantity produced
Supply curve
Upward slope
Supply down
Increase in demand
Supply up
Decrease in demand
Graph: price increases
Supply stays the same but quantity increases (movement along line)
