Demand, Supply, and Market Equilibrium Flashcards
1
Q
What is demand?
A
the amount of a good that consumers are willing and able to buy at a given price.
2
Q
What is supply?
A
The amount of a product which suppliers will offer to the market at a given price.
3
Q
What does the P stand for in PASIFICE?
A
Population
4
Q
What does the C stand for in PASIFICE?
A
Complimentary goods
5
Q
Name a factor that may cause a shift is the supply curve?
A
Changes in the cost of production.
Changes in technology.
Indirect taxes.
Subsidies
6
Q
What is subsidy?
A
Money from the government.
7
Q
What does the E stand for in PASIFICE?
A
External shocks
8
Q
Name 3 factors that can change demand
A
Buying habits.
Advertisement.
Price.
Quality.
9
Q
What does the second I stand for in PASIFICE?
A
Interest rates
10
Q
What does the first I stand for in PASIFICE?
A
Income
