Demand & Supply// Price Changes in the Market Flashcards
Describes a consumer’s desire and willingness to pay a price for a specific good or service.
Demand.
Demand refers to the continuous flow of purchases made over a given period of time.
True.
When demand is greater than supply, price is pulled upward.
True- Shortage.
These are the two price regulations set by the government.
Price ceilings and price floors.
Maximum price; below MCP.
Price ceiling.
Refers to the inefficient distribution of goods and services in the free market.
Market Failure.
From MCP, both demand and supply proportionately increases due to non-price determinants.
D=S. Price remains the same.
From MCP, supply decreases due to non-price determinants, while demand remains the same.
D>S. Shortage. Price goes up.
From MCP, supply increases due to non-price determinants, while demand remains the same.
D
From MCP, demand decreases due to non-price determinants, while supply remains the same.
D
From MCP, demand increases due to non-price determinants, while supply remains the same.
D>S. Shortage. Price goes up.
When demand is less than supply, prices are pushed downward.
True- Surplus.
MCP stands for.
Marginal Cost Pricing.
Number of commodities buyers are willing and able to buy.
Quantity demanded.
Number of commodities buyers are willing but are not necessarily able to buy.
Potential demand.