Module 3 Video/Other Flashcards
Where the X and Y axis meet
Origin
Price is always represented by the ____________ axis. Quantity is always represented by the _________ axis.
Price= vertical
Quantity=horizontal
Demand curves slope
Down
complements
Products that go together - PB&J
substitutes
buying almond milk instead of oat milk
If the price of jelly goes up demand for peanut butter is gonna…
go down. The demand for jelly will stay the same. The quantity demanded of jelly will go down.
If Pepsi is on sale, what happens to the demand for coke? What happens to the demand for Pepsi?
The demand for Coke goes down. Pepsi demand stays the same-quantity demanded will go up. People will be able to afford and buy more.
When a shift in demand occurs, what happens to the curve?
The ENTIRE curve moves. We want to buy more of this for reasons completely unrelated to the price- such as at the beginning of a pandemic when everyone wants to buy hand sanitizer and toilet paper.
Supply curve goes what direction?
Up (This is PRODUCER behavior)
Demand is __________ behavior. Supply is ____________ behavior.
Demand is CONSUMER behavior. Supply is PRODUCER behavior.
Supply shift decrease looks like…
a shift to the left is a decrease (looks like it’s above the original line) and shift to the right is an increase (looks like it’s below the original line).
Counterintuitive but true!
Where our supply curve crosses our demand curve is gonna be where…
the market clears, called equilibrium. When this happens, that means our quantity supplied is equal to the quantity demanded.
Shortages cause prices being ______. Surplus causes prices to ________.
rise
fall
When demand and supply curves both move, _____ definitely changed.
price
With two curve shifts, the one variable ______ and the other variable is __________.
The one variable changed for sure. The other one is going to be ambiguous.
