Demand and Supply Flashcards
It shows the various amounts of products that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time
Demand
It is a table showing how much of a given product a household would be willing to buy at different prices
Demand Schedule
It is also derived from the demand schedule
Demand curve
Is a graph illustrating much of a given product a household would willing to buy at different prices
Demand curve
It states that there is a negative inverse relationship between price and the quantity of good demanded and its price
The law of demand
This means that the demand curve is _
slopes downward
products whose demands varies directly with income
Superior or Normal Goods
goods whose demand varies indirectly with income
Inferior Goods
one that can be used in place of other goods
Substitution Goods
one can be used together with other goods
Complementary Goods
when demand shifts to the _, demand _
right, increases
Change in price of a good or service leads to
Movement along the curve (Change in quantity demanded)
Change in income, preferences, or price of goods or services leads to
A shift of curve (Changes in demand)
various amounts of products that producers are willing and able to make available for sale at each of a series of possible prices during a specific period
Supply
is a table showing how much product firms will supply at different prices
Supply schedule
represents the number of units of a product that a firm would be willing and able to offer for sale at a particular price during a given time period
Quantity supplied
is a graph illustrating how much product a firm will supply at different prices
Supply curve
states that there is a POSITIVE relationship between price and quantity of goods supplied
The law of supply
That is why supply curves typically have a _
Positive slope
The price of a good or service
Resource prices/ cost of production
