Ch. 4 and 5

Question 1

Supply

Answer 1

the quantity of a good or service producers are willing and able to sell at different prices at a particular time

Question 2

market supply

Answer 2

the sum of all individual supplies in a given market at a particular time

Question 3

factors that influence supply

Answer 3

1. changes in marginal cost of production
2. changes in the number of sellers or producers
3. change in expectations

Question 4

market-clearing price

Answer 4

the price that balances the amount buyers want to buy with the amount sellers want to sell (market equilibrium)

Question 5

3 items that impact MCP # 1

Answer 5

shortage- how much of a product buyers want to buy than sellers want to sell at a given price

Question 6

3 items that impact MCP # 2

Answer 6

surplus- how much more of a product sellers want to sell than buyers want to buy at a given price

Question 7

3 items that impact MCP # 3

Answer 7

rationing- the distribution or allocation of a product (usually limited)

Question 8

OPEC

Answer 8

organizations of petroleum exporting countries