Demand and Supply Part 2 Flashcards
It drives supply, if you advance this you will produce more
Technology
It gives incentives to the firm to produce more, it could also be financed by the government
Taxes and subsidies
The situation of the economy
Producers expectation
When supply shifts to the _, supply increases
right, increases
Change in price of good or service
Movement along the curve (Change in quantity supplied
Change in cost, input prices, technology, or prices of related goods and services
A shift of curve (Change in supply)
when demand is equal to supply
Market Equilibrium
When demand exceeds supply there is _
Shortage
when supply exceeds demand there is _
Surplus
States that in all other things equal, when Demand is greater than supply, price increases. When supply is greater than demand, price decreases
Law of Demand and Supply
the commodity sold is a dollar and its price is shown in terms of a peso per dollar
Exchange Rate Control
