Demand/ supply notes Flashcards
law of demand
the ability(money) and want to purchase a good
law of supply
willingness and ability of sellers to produce a good or service
what are the determinants of demand
-taste and preferences, -income, -population, -subs and comps, -price expectations, -norm and inferior goods
what are the determinents of supply
-technology, -cost of resources, -producers price expectations, -producers expectation of the cost of resources, -competition, -tax/subsidy
price
the cost of a good or service as said on the market
equilibrium
a point of “rest” where demand=supply
economics
the science that deals with the production, distribution, and consumption, of goods and services
shortage
when the quantity demanded exceeds the quantity supplied
surplus
when the quantity supplied exceeds the quantity demanded
tax
an additional fee placed on a good
subsidy
when the government gives you money for a product
shift/ movement
a movement in the equillibrium
opportunity cost
the utility of the choice you gave up
sunk cost
an expected cost
marginal analysis
the study of what you buy and don’t buy
