Chapter 4

Question 1

What is a market?

Answer 1

Any place where buyer and sellers interact

Question 2

What is a perfectly competitive market

Answer 2

-Identical good
-Many buys and sellers
-Buyers and sellers take the price given

Question 3

Demand

Answer 3

Behavior of buyers(low demand they want less/high deamand they want more)

Question 4

What is quantity demanded

Answer 4

How much someone is willing to buy at a certain price

Question 5

What happens to buyer demand when price goes down?

Answer 5

Buyers usually want to buy more so buyer demand goes up

Question 6

What is law of demand?

Answer 6

When prices goes down demand goes up/ When price goes up demand goes down

Question 7

What is the formula for market demand

Answer 7

All buyers+amount willing to buy for x price = market demand

Question 8

Quantity supplied

Answer 8

Amount a producer is willing and able to sell at a certain price

Question 9

Law of supply

Answer 9

When prices goes up producers sell more quantity/ When prices goes down producers sell less quantity

Question 10

Supply Schedule

Answer 10

A graph how much product a producer is willing to sell at a certain price

Question 11

Supply Curve

Answer 11

A curve ona graph where each buyer is willing to sell at a certain price an the market demand for those prices

Question 12

Increase in Supply

Answer 12

Supply shifts to the right

Question 13

Decrease in Supply

Answer 13

Supply shifts to the left