Demand and supply Flashcards
A movement along the demand curve stems from
Change in price
A movement along the demands curve resulting from a change in price is known as
Change in qd
A shift in a demand curve is known as
A change in demand
A change in other variables held constant in constructing a demand schedule that will change qd at each price is known as?
A shift
A good for which demand increases when income increases is known as
Normal good
A good for which Demand decreases when income increases is known as
An inferior good
An increase in income shifts the demand curve for fresh fruit to the?
Right
An increase in income shifts the demand for canned food to the?
Left
Examples or types of demand shifters?
Preference or taste
Income
Buyer expectations
Demographic characteristics (population )
Prices of related goods and services
A demand curve slopes…?
Downward
A change in any of the variables affecting supply asides price will cause a
Shift in the supply curve
A change that causes qs to increase at each price will cause the supply curve to shift to the?
Right
A change that causes qs to decrease at each price will cause the supply curve to shift to the?
Left
A variable that can change qs at each price is known as
A supply shifter
An increase in any factor of production will lead to
A decrease in qs
The equilibrium price in any market is the price at which..?
QD=QS
The amount where the qs exceeds qd at current price is called?
Surplus
A price below equilibrium will cause..?
Shortages
The point where QD exceeds QS at current price
Shortage
When surplus occurs, sellers tend to?
Reduce the price of their good until it reaches equilibrium
Market Surpluses and Shortages are usually………-lived?
Short
What is a price floor?
Set by the government, a price floor is the minimum allowable price set above the equilibrium price
What is a price ceiling?
Set by the government, it is the maximum allowable price, set above the equilibrium price
Used to describe the responsiveness in the quantity demanded of a good or service when the price of another good or service changes
Cross Elasticity Of Demand
