chapter 4 Flashcards
1
Q
what is law of demand
A
the quantity demanded rises when the price falls.
2
Q
what changes the demand curve
A
when the price changes
3
Q
what is the law of supply
A
the quantity supplied rises when the price rises
4
Q
what is excess demand
A
when consumer want more than suppliers provide at a given price. causes shortage
5
Q
what is excess supply
A
when suppliers provide more than consumers want at a given price. causes surplus.
