Demand, Supply, and Prices Flashcards
As ___ and ___ interact, the market moves toward market equilibrium
buyers and sellers
___ is the price at which quantity demanded and the quantity supplied are equal
Equilibrium price
The ___ axis shows the various prices at which salads are offered for sale and bought
vertical
The ___ axis shows the quantity of salads, whether it is the quantity demanded or the quantity supplied
horizontal
___ is the result of quantity supplied being greater than quantity demanded
Surplus
___ is the result of quantity demanded being greater than quantity supplied
Shortage
When there is a ___, producers raise prices in an attempt to balance quantity supplied and quantity demanded
shortage
When there is a ___, producers lower prices in an attempt to balance quantity supplied and quantity demanded
surplus
What are the six factors that can change in demand?
income market size consumer tastes consumers expectations substitute goods complementary goods
What are the six factors that can change supply?
Input costs labor productivity technology government actions producer expectations number of producers
A ___ is a legal minimum price that buyers must pay for a product
price floor
The ___ is a legal minimum amount that an employer must pay for one hour of work
minimum wage
___ is a system in which the government allocates goods and services using factors other than price
Rationing
A ___ involves illegal buying or selling in violation of price controls or rationing
black market
A ___ occurs below equilibrium
binding price ceiling
