Demand, Supply, & Prices : 4/4/16 Flashcards
As buyers and sellers interact, the market moves toward m______ e___________.
Market equilibrium
E________ p_____ is the price at which quantity demanded and the quantity supplied are equal.
Equilibrium price
On the graph, the _________ axis shows the various p_____ at which salads are offered for sale and bought.
Vertical, prices
The _____________ axis shows the q______ of salads, whether it is the quantity demanded or the quantity supplied.
Horizontal, quantity
S_______ is the result of quantity supplied being greater than quantity demanded.
Surplus
S________ is the result of quantity demanded being greater than quantity supplied.
Shortage
When there is a s________, producers _____ prices in an attempt to balance quantity supplied and quantity demanded.
Shortage, raise
When there is a s_______, producers _____ prices in an attempt to balance quantity supplied and quantity demanded.
Surplus, lower
If Demand D_______ or Supply I_________ Then Equilibrium Price ____.
Decreases, increases, falls
If Demand I________ or Supply D_______ Then Equilibrium Price _____.
Increases, Decreases, Rises
A p____ c______ is the legal maximum price that sellers may charge for a product.
Price ceiling
A p___ f_____ is a legal minimum price that buyers must pay for a product.
Price floor
The m_______ w___ is a legal minimum amount that an employer must pay for one hour of work.
Minimum wage
R________ is a system in which the government allocates goods and services using factors other than price.
Rationing
A b_____ m_______ involves illegal buying or selling violation of price controls or rationing.
Black market
A b______ p____ c_______ occurs below equilibrium.
Binding price ceiling
A b_______ p____ f____ occurs above equilibrium.
Binding price floor
Six factors can cause change in demand : i_____, m_____ s___, c_______ t_____, c_______ e_________, s_______ g_____, and c___________ g____.
Income, market size, consumer tastes, consumer expectations, substitute goods, complementary goods
Six factors cause a change in supply. : I____ c____, l____ p________, t________, g_______ a_____, p_______ e_________, and n______ of p_______.
Input costs, labor productivity, technology, government actions, producer expectations, number or producers
C_________ p______ occurs when producers sell goods and services at prices that best balance the twin desires of making the highest profit and luring consumers away from rival producers.
Competitive pricing
Four characteristics of the Price System: 1. It is n______. 2. It is m______ d_____. 3. It is f______. 4. It is e________.
Neutral, market driven, flexible, efficient
An i_________ encourages people to act in certain ways.
Incentive
For producers, the price system has two great advantages: I_________ and m_________.
Information, motivation
P_____ act as signals and incentives to consumers.
Prices
Brand marketers rely on the c_________ p________ that a certain l____ is worth a higher price.
Consumer perception, logo
