Price Determination Flashcards
1
Q
What is the equilibrium price?
A
The price where demand and supply meet.
2
Q
What call do we call a upwards movement on either the demand or supply curve?
A
A contraction.
3
Q
What do we call a downwards movement on either the demand or supply curve?
A
An extension.
4
Q
How do we show an increase in demand on a graph?
A
The price increases and the demand curve will shift to the right.
5
Q
How do we show an decrease in demand on a graph?
A
The price decreases and the demand curve will shift to the left.
6
Q
How do we show a increase in supply on a graph?
A
The price decreases and the supply curve will shift to the right.
7
Q
How do we show a decrease in supply on a graph?
A
The price will increase and the supply curve will shift to the left.
