Economics chapter 2 Flashcards
1
Q
What are the 5 shifters of demand
A
Number of buyers
Income
Price of related goods
Tastes/preferences
Future expectations
2
Q
What are the 5 shifters of supply
A
Number of sellers, technology, availability of resources, expectations of future profit, govt action
3
Q
This is unaffected by the change in price
A
Inelastic goods
4
Q
This is effected by a Change in price
A
Elastic goods
5
Q
Price ceiling
A
Maximum legal price a seller can charge for a product
6
Q
Price floor
A
Minimum legal price a product can be sold for
7
Q
Excise tax
A
Per unit tax on producers - for every unit made the producer must pay a tax
8
Q
Price floors cause
A
Surplus
9
Q
Price ceilings cause
A
Shortage
