Price, Quantity and Efficiency Flashcards
A place of interaction where buyers and sellers creates trade-offs off.
Market
What are the two parties involved in market trade-offs?
Buyers and Sellers
In the market, they are the producers.
Sellers, Firms, or Businesses
In the market, they are the so-called consumers.
Buyers, Consumers or Costumers
Monetary value/worth of a product.
Price
It means “To ask of something”
Demand
It means “To give or suffice of something”
Supply
The total amount of a specific good or service that is available to consumers.
Supply
The needs created by the necessity of the consumers.
Demand
The market perspective of the consumers.
Demand
The market perspective of the businesses.
Supply
The law of demand states that ________________________________________________.
The price is inversely proportional to the Quantity Demanded.
An assumption that says “The price is inversely proportional to the Quantity Demanded.”
Law of Demand
An assumption that says “The price is directly proportional with Quantity Supply.”
Law of Supply
The law of supply states that ________________________________________________.
“The price is directly proportional with Quantity Supply.”
Graphical representation of a quantity demanded.
Demand Schedule
Graphical representation of a demand schedule that is always consistent with the Law of Demand.
Demand Curve
The number of goods buyers are willing to purchase at a given price.
Quantity Demanded Qd
If Price goes up Quantity Demanded goes down.
Law of Demand
If Price goes down Quantity Demanded goes up.
Law of Demand
What is Qd?
Quantity Demanded
What is Qs?
Quantity Supply
A graphical representation of quantity supply.
Supply Schedule
Graphical representation of a supply schedule that is always consistent with the Law of Supply.
Supply Curve
The number of goods sellers are willing to supply at a given time.
Quantity Supply Qs
If Price goes up Quantity Supply goes up.
Law of Supply
If Price goes down Quantity Supply goes down.
Law of Supply
What is the Law of Supply?
It states that “The price is directly proportional to the Quantity Demanded.”
If Prices goes up Quantity Supply goes up.
If Prices goes down Quantity Supply goes down.
What is the Law of Demand?
It states that “The price is inversely proportional to the Quantity Demanded.”
If Prices goes up Quantity Demanded goes down.
If Prices goes down Quantity Demanded goes up.
A condition where everything is perfectly balanced.
Equilibrium
A condition where the quantity demanded is greater than the quantity supplied.
Shortage
A condition where the quantity supplied is greater than the quantity demanded.
Surplus
The state in which supply and demand balance each other: happy buyers and happy sellers.
Market Equilibrium
The price point where the supply of goods matches demand.
Equilibrium Price
The state when there is no shortage or surplus of a product in the market.
Equilibrium Quantity
An Upward Slopping Positive Slope
Supply Curve
A Downward Slopping Negative Slope
Demand Curve
These are Non-Price Factors affecting the Quantity Demanded
Determinants of Demand
These are Non-Price Factors affecting the Quantity Supply
Determinants of Supply
These are Affordable Goods
Normal Goods
These are Expensive Commodities
Superior Goods
These are goods that complement each other
Related Goods
These are goods that can be substituted or given an alternative
Substitute Goods
Give the Three Determinants of Demand
Income
Related Goods
Substitute Goods
Why is income a Determinant of Demand?
The Income Effect
Higher-income higher expenses
Consumption of normal goods goes down
Consumption of superior goods up
Consumption of normal goods goes down
Consumption of superior goods goes up
The Income Effect
It’s an assumption that says “The higher-income higher expenses”
The Income Effect
A change in the price of one product that complements another can affect the Quantity Demanded for the complementary product.
Related Goods Effect
A change in the price of one product that has a substitute can affect the Quantity Demanded for the substitute product.
Substitute Goods Effect
Give the Three Determinants of Supply
Technology
Tax
Subsidies
Determinant of supply that is responsible for better production due to innovative pieces of machinery.
Technology
A mandatory charge collected by the government from businesses.
Tax
Incentives from the government to support businesses.
Subsidies
