Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BASIC MICROECONOMICS > M3 PT.2 > Flashcards

M3 PT.2 Flashcards

1
Q

refers to the specific amount of a good or service that producers are willing and able to sell at a given price, holding all other factors constant (ceteris paribus).

A

QUANTITY SUPPLIED

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

If the price of oranges increases from $1.00
to $1.50 per unit, the quantity supplied might

A

INCREASE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Movement Up the Curve

A

PRICE INCREASE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Movement Down the Curve

A

PRICE DECREASE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

refers to the overall relationship between the price of a good or service and the quantity that producers are willing and able to sell over a range of prices, holding all other factors constant.

A

SUPPLY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Factors causing shifts in supply

A
  • PRODUCTION COST
  • TECHNOLOGY
  • NUMBER OF SELLERS
  • EXPECTATIONS
  • GOVERNMENT POLICIES
  • NATURAL EVENTS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Changes in the cost of inputs examples

A
  • LABOR
  • RAW MATERIALS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

is a fundamental principle in economics that describes the direct relationship between the price of a good or service and the quantity that producers are willing and able to supply, all else being equal (ceteris paribus).

A

LAW OF SUPPLY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

According to this law, as the price of a good or service increases, the quantity supplied increases, and as the price decreases, the quantity supplied decreases.

A

LAW OF SUPPLY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

is a cornerstone of economic theory, describing how producers respond to price changes.

A

LAW OF SUPPLY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

As prices increase, producers are generally willing to supply more of a good, and as prices decrease, they supply less. This principle is visually represented by the ___

A

UPWARD-SLOPING SUPPLY CURVE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

cause the supply curve to shift either to the right (increase in supply) or to the left (decrease in supply)

A

DETERMINANTS OF SUPPLY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Understanding these ____ helps in analyzing how supply changes in response to various market conditions.

A

DETERMINANTS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

DETERMINANTS OF SUPPLY

A
  • PRODUCTION COSTS
  • NUMBER OF SELLERS
  • PRICE OF RELATED GOODS
  • EXPECTATION OF FUTURE PRICES
  • GOVERNMENT POLICIES
  • NATURAL CONDITIONS
  • PRODUCER EXPECTATIONS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Under production costs

A
  • INPUT PRICES
  • TECHNOLOGICAL ADVANCEMENTS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Under number of sellers

A
  • Marketing entry or exit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Under price of related goods

A
  • SUBSTITUTES IN PRODUCTION
  • COMPLEMENTARY GOODS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Under expectations of future prices

A
  • FUTURE PRICE EXPECTATIONS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Under government policies

A
  • TAXES
  • SUBSIDIES
  • REGULATIONS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Under natural conditions

A

WEATHER AND NATURAL EVENTS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Under producer expectations

A

EXPECTATIONS ABOUT MARKET CONDITIONS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the producer expectations?

A
  • CHANGES IN CONSUMER PREFERENCES
  • ECONOMIC DOWNTURNS
  • TECHNOLOGICAL ADVANCEMENTS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

crucial for understanding how supply in a market can change independently of the price of the good or service itself

A

DETERMINANTS OF SUPPLY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

is a table that shows the relationship between the price of a good or service and the quantity that producers are willing and able to supply over a specified period, holding all other factors constant (ceteris paribus).

A

SUPPLY SCHEDULE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

is the data that is used to create the supply curve.

A

SUPPLY SCHEDULE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

KEY COMPONENTS OF A SUPPLY SCHEDULE

A
  • PRICE
  • QUANTITY SUPPLIED
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

This is typically listed in the first column of the supply schedule.

A

PRICE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

This is listed in the second column of the supply schedule.

A

QUANTITY SUPPLIED

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

illustrates the direct relationship between price and quantity supplied, as described by the Law of Supply.

A

SUPPLY SCHEDULE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

The quantity of the good or service that producers are willing to supply at each corresponding price level.

A

QUANTITY SUPPLIED

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

This data (supply schedule) can be plotted on a graph to create the ___

A

SUPPLY CURVE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

visually represents the relationship between price and quantity supplied.

A

SUPPLY CURVE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Each row in the supply schedule corresponds to a ___ on the supply curve.

A

POINT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

is a simple yet powerful tool for understanding how the quantity of a good or service that producers are willing to supply changes in response to price changes.

A

SUPPLY SCHEDULE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

serves as the foundation for creating the supply curve, which is essential for visualizing and analyzing supply behavior in the market.

A

SUPPLY SCHEDULE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

is a graphical representation of the relationship between the price of a good or service and the quantity that producers are willing and able to supply over a given period, holding all other factors constant (ceteris paribus).

A

SUPPLY CURVE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

The curve typically slopes ___ from left to right, reflecting the direct relationship between price and quantity supplied as described by the Law of Supply.

A

UPWARD

38
Q

is a crucial tool in economics for visualizing the relationship between price and quantity supplied.

A

SUPPLY CURVE

39
Q

It reflects the Law of Supply and shows how producers respond to price changes.

A

SUPPLY CURVE

40
Q

Understanding the ___ is essential for analyzing market behavior and making informed economic decisions.

A

SUPPLY CURVE

41
Q

These concepts describe different movements on or of the supply curve and are influenced by different factors.

A

CHANGE IN SUPPLY VS CHANGE IN QUANTITY SUPPLIED

42
Q

refers to a movement along the same supply curve due to a change in the price of the good or service.

A

CHANGE IN QUANTITY SUPPLIED

43
Q

This movement occurs when the price of the good changes, assuming all other factors that affect supply remain constant (ceteris paribus).

A

CHANGE IN QUANTITY SUPPLIED

44
Q

refers to a shift of the entire supply curve due to changes in factors other than the price of the good or service.

A

CHANGE IN SUPPLY

45
Q

This shift indicates that at the same price levels, the quantity supplied has changed.

A

CHANGE IN SUPPLY

46
Q

CAUSES OF CHANGE IN SUPPLY

A
  • PRODUCTION COSTS
  • TECHNOLOGY
  • NUMBER OF SELLERS
  • GOVERNMENT POLICIES
  • EXPECTATIONS
47
Q

A decrease in input costs can shift the supply curve to the right.

A

PRODUCTION COSTS

48
Q

Advances in technology that reduce
production costs can increase supply.

A

TECHNOLOGY

49
Q

An increase in the number of sellers in the
market shifts the supply curve to the right.

A

NUMBER OF SELLERS

50
Q

Subsidies can increase supply, while taxes
can decrease it.

A

GOVERNMENT POLICIES

51
Q

If producers expect higher future prices, they may reduce current supply, shifting the supply curve to the left.

A

EXPECTATIONS

52
Q

The cost of inputs (e.g., raw materials,
labor, energy) directly affects production costs. If input prices rise, production becomes more expensive, leading to a decrease in supply (leftward shift). Conversely, a decrease in input prices lowers production costs, resulting in an increase in supply (rightward shift).

A

PRODUCTION COSTS (INPUT PRICES)

53
Q

Improvements in technology can make
production more efficient, reducing costs and increasing supply. A new technology that enables faster production with the same resources will shift the supply curve to the right.

A

PRODUCTION COSTS (TECHNOLOGICAL ADVANCEMENTS)

54
Q

The number of producers or sellers in the market directly impacts supply. An increase in the number of sellers increases the overall market supply, shifting the supply curve to the right. Conversely, if sellers exit the market, the supply decreases, shifting the supply curve to the left.

A

NUMBER OF SELLERS (MARKETING ENTRY OR EXIT)

55
Q

If the price of a substitute good (a good that can be produced using the same resources) increases, producers might shift their resources to produce more of that good, reducing the supply of the original good.

A

PRICE OF RELATED GOODS (SUBSTITUTES IN PRODUCTION)

56
Q

If a good is produced jointly with another
(e.g., beef and leather), an increase in the price of the complementary good may lead to an increase in the supply of both products. For example, if the price of beef rises, cattle farmers might slaughter more cattle, leading to an increase in the supply of leather as well.

A

PRICE OF RELATED GOODS (COMPLEMENTARY GOODS)

57
Q

If producers expect prices to rise in the
future, they may hold back some of their current production to sell at the higher future prices, decreasing current supply (leftward shift). Conversely, if they expect prices to fall, they might increase current production to sell more before the price drops, increasing current supply (rightward shift).

A

EXPECTATIONS OF FUTURE PRICES (FUTURE PRIC EXPECTATIONS)

58
Q

Taxes on production, such as excise taxes,
increase the cost of producing a good, leading to a decrease in supply (leftward shift). Higher taxes mean higher production costs, reducing the willingness and ability of firms to supply the same quantity at a given price.

A

GOVERNMENT POLICIES (TAXES)

59
Q

Subsidies are payments from the
government to producers that lower their costs of production. A subsidy increases supply (rightward shift) because it makes production more profitable, encouraging producers to supply more.

A

GOVERNMENT POLICIES (SUBSIDIES)

60
Q

Government regulations can increase production costs or restrict output, leading to a decrease in supply (leftward shift). For example, stricter environmental regulations might increase the cost of production, reducing supply.

A

GOVERNMENT POLICIES (REGULATIONS)

61
Q

such as weather,
climate, and natural disasters, can significantly affect the supply of goods, especially agricultural products. Favorable weather conditions can lead to an abundant harvest, increasing supply (rightward shift), while adverse conditions (drought, floods) can reduce supply (leftward shift).

A

NATURAL CONDITIONS (WEATHER AND NATURAL EVENTS)

62
Q

about future market conditions, such as changes in consumer preferences, economic downturns, or technological advancements, can also influence supply. For instance, if producers expect a new technology to lower production costs in the future, they might reduce current supply in anticipation of producing more at a lower cost later.

A

PRODUCER EXPECTATIONS (EXPECTATIONS ABOUT MARKET CONDITIONS)

63
Q

is a key concept in economics that describes a state where the supply of a good or service matches the demand for it.

A

MARKET EQUILIBRIUM

64
Q

In this state, the quantity supplied equals the quantity demanded, and there is no tendency for the price to change unless influenced by external factors.

A

MARKET EQUILIBRIUM

65
Q

At ___the market clears, meaning there is no surplus or shortage of the good.

A

EQUILIBRIUM

66
Q

The price at which the quantity of a good or service supplied by producers equals the quantity demanded by consumers. It is the price at which the market is balanced.

A

EQUILIBRIUM PRICE (MARKET CLEARING PRICE)

67
Q

The price where the supply and demand curves intersect.

A

EQUILIBRIUM PRICE

68
Q

The quantity of the good or service that is bought and sold at the equilibrium price. It represents the amount of the good that consumers are willing to buy and producers are willing to sell at the equilibrium price.

A

EQUILIBRIUM QUANTITY

69
Q

The quantity corresponding to the equilibrium price.

A

EQUILIBRIUM QUANTITY

70
Q

Typically slopes upward, showing that as the price increases, the quantity supplied increases.

A

SUPPLY CURVE

71
Q

Typically slopes downward, showing that as the price decreases, the quantity demanded increases.

A

DEMAND CURVE

72
Q

The point where the supply curve intersects the demand curve. This point indicates the equilibrium price and equilibrium quantity.

A

EQUILIBRIUM POINT

73
Q

is a fundamental concept that illustrates how markets naturally move towards a state of balance where supply meets demand.

A

MARKET EQUILIBRIUM

74
Q

is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

A

PRICE EQUILIBRIUM OR EQUILIBRIUM PRICE

75
Q

It is a crucial concept in economics as it represents the point where the market is balanced, with no inherent forces causing the price to change.

A

PRICE EQUILIBRIUM

76
Q

The equilibrium price is sometimes called the ____ because it is the price at which the market “clears.”

A

MARKET-CLEARING PRICE

77
Q

At this price, there is no surplus (excess supply) or shortage (excess demand) of the good or service.

A

MARKET -CLEARING PRICE OR PRICE EQUILIBRIUM

78
Q

On a supply and demand graph, the equilibrium price is found at the point where the supply curve intersects the demand curve.

A

INTERSECTION POINT

79
Q

The quantity corresponding to the equilibrium price is known as the ___

A

EQUILIBRIUM QUANTITY

80
Q

It is the amount of the good or service that consumers want to buy and producers want to sell at the equilibrium price.

A

EQUILIBRIUM QUANTITY

81
Q

s a central concept in economics that ensures the market for a good or service is balanced.

A

PRICE EQUILIBRIUM

82
Q

refers to the equilibrium quantity, which is the amount of a good or service that is bought and sold at the equilibrium price in a market.

A

QUANTITY EQUILIBRIUM

83
Q

It is the quantity where the supply of the good equals the demand for it, ensuring that there is neither a surplus nor a shortage at this price.

A

QUANTITY EQUILIBRIUM

84
Q

is a crucial aspect of market analysis, as it indicates the amount of a good or service that is efficiently distributed at the equilibrium price.

A

QUANTITY EQUILIBRIUM

85
Q

are concepts that describe imbalances in the market when the quantity supplied and quantity demanded are not equal

A

EXCESS SUPPLY AND EXCESS DEMAND

86
Q

also known as a surplus, occurs when the quantity of a good or service supplied by producers exceeds the quantity demanded by consumers at a given price.

A

EXCESS SUPPLY

87
Q

Above Equilibrium Price

A

EXCESS SUPPLY

88
Q

also known as a shortage, occurs when the quantity of a good or service demanded by consumers exceeds the quantity supplied by producers at a given price.

A

EXCESS DEMAND

89
Q

Below Equilibrium Price

A

EXCESS DEMAND

90
Q

are key concepts that describe how markets can deviate from equilibrium.

A

EXCESS SUPPLY AMD EXCESS DEMAND

91
Q

increase the cost of producing a good

A

excise taxes

92
Q

increase the cost of producing a good

A

excise taxes

BASIC MICROECONOMICS (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions