M3 Flashcards

1
Q

a process of buyers and sellers exchanging
goods and services.

A

MARKET

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2
Q
A
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3
Q

common example of markets:

A

financial market
farmers market
trade fair
over the counter
online market
auction

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4
Q

a group determine the demand

A

buyers

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5
Q

a group determine the supply of the product,

A

sellers

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6
Q

Types of Market Structure

A

Competitive
monopolistic
oligopoly
pure monopoly

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7
Q

market structure defined by a large number of small firms competing against each other. Products are identical to competitors’ products,
and there are no significant barriers to entering and exiting the market.

A

competitive / pure competition

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8
Q

Firms sell
similar but highly differentiated products.

A

monopolistic

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9
Q

dominated by a several firms, resulting in limited
competition. They can collaborate with or compete against each other to use their
collective market power to drive up prices and earn more profit.

A

oligopoly

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10
Q

there is only one firm or seller that dictates the
price and supply level of goods and services.

A

pure monopoly

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11
Q

other factors being constant price and
quantity demand of any good and service are inversely (negatively) related to each other.

A

law of demand

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12
Q

people will buy more at lower prices and buy less at higher prices, if other things remaining the same.

A

law of demand

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13
Q

shows the relationship between
the price of the commodity and the quantity demanded.

A

individual demand schedule

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14
Q

describes the demand for a given product and
who wants to purchase it. This is determined by how willing consumers are to spend a
certain price on a particular good or service.

A

market demand curve

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15
Q

the sum of
all individual demands for a particular good or service. The horizontal summing of the
demand curves of many individuals is called

A

market demand curve

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16
Q

a tabulation of the quantity of a good
that all consumers in a market will purchase at a given price.

A

market demand schedule

17
Q

drawn under the assumption that all other
things are held constant, except the price of the good.

A

demand curve

18
Q

The other variables that influence
the demand curve are called

A

determinants of demmand

19
Q

a change in these other factors of market lead to

A

shift in demand curve

20
Q

two ways the demand curve can shift

A

rightward shift
leftward shift

21
Q

There is an increase in demand. At any given price, consumers
demand a larger quantity of the good than before.

A

rightward

22
Q

There is a decrease in demand. At any given price, consumers
demand a smaller quantity of the good than before.

A

leftward shift

23
Q

Determinants of Demand: Factors that shift the demand curve

A
  1. Prices of related good and service (substitutes and complements)
  2. Income (Normal and Inferior Goods)
  3. Number of buyers
  4. Tastes
  5. Expectations
24
Q

Producer will decide how much/many to produce given the price.

A

market supply

25
Q

the higher the price of the good, the
greater the quantity supplied, and the lower the price of the good, the smaller the quantity
supplied, ceteris paribus.

A

law of supply

26
Q

what do you call the other term for law of supply

A

ceteris paribus

27
Q

states that other factors remaining constant, price and quantity supplied of
a good are directly related to each other.

A

law of supply

28
Q

The combinations of price and quantity supplied were plotted
and joined to create the

A

indivudal supply curve

29
Q

the sum of the supplies of all sellers

A

market supply

30
Q

refers to the horizontal summation of the supply curves for all the
individual producers in the market.

A

market supply curve

31
Q

A change in any other factor that can affect seller behavior

A

shifts in supply curve

32
Q

what do you call if there is a shift int the entire supply curve

A

change in supply

33
Q

determinants of supply

A

seller’s input price
price of related products
expectations
number of sellers
technology

34
Q

An increase in supply when the curve shifts __________: At any given price, producers supply a larger quantity of the good than before.

A

right ward shift

35
Q

A decrease in supply, there is a __________ in the supply curve: At any given
price, producers supply a smaller quantity of the good than before.

A

leftward shift

36
Q

exists when the price is above equilibrium, which encourages sellers to lower
their prices to eliminate the _______.

A

surplus

37
Q

will exist at any price below equilibrium, which leads to the price of the
commodity increasing.

A

shortage