Demand And Supply Flashcards
What’s the “Law of Demand”?
People will be willing and able to buy more if product is cheaper.
What is “demand”?
Schedule or graph showing relationship between price of a product and amount consumers are willing/able to buy.
*Graph does not show what consumers actually buy at certain douce
What is ceteris paribus?
“All other factors held constant” - all hypothetical relationships between variables in economics
On a graph of demand schedule, what do Wd and P represent?
Quantity demanded and Price
What is supply?
Schedule/graph showing relationship between price of product and amount producers are willing/able to supply
The intersection of demand and supply curves indicate the ….
Equilibrium Price and Quantity
When can producers sell all they want and buyers buy all they want?
At the point of equilibrium
