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Basic Microeconomics > Price, Quantity and Efficiency > Flashcards

Price, Quantity and Efficiency Flashcards

1
Q

A place of interaction where buyers and sellers creates trade-offs off.

A

Market

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2
Q

What are the two parties involved in market trade-offs?

A

Buyers and Sellers

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3
Q

In the market, they are the producers.

A

Sellers, Firms, or Businesses

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4
Q

In the market, they are the so-called consumers.

A

Buyers, Consumers or Costumers

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5
Q

Monetary value/worth of a product.

A

Price

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6
Q

It means “To ask of something”

A

Demand

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7
Q

It means “To give or suffice of something”

A

Supply

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8
Q

The total amount of a specific good or service that is available to consumers.

A

Supply

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9
Q

The needs created by the necessity of the consumers.

A

Demand

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10
Q

The market perspective of the consumers.

A

Demand

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11
Q

The market perspective of the businesses.

A

Supply

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12
Q

The law of demand states that ________________________________________________.

A

The price is inversely proportional to the Quantity Demanded.

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13
Q

An assumption that says “The price is inversely proportional to the Quantity Demanded.”

A

Law of Demand

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14
Q

An assumption that says “The price is directly proportional with Quantity Supply.”

A

Law of Supply

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15
Q

The law of supply states that ________________________________________________.

A

“The price is directly proportional with Quantity Supply.”

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16
Q

Graphical representation of a quantity demanded.

A

Demand Schedule

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17
Q

Graphical representation of a demand schedule that is always consistent with the Law of Demand.

A

Demand Curve

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18
Q

The number of goods buyers are willing to purchase at a given price.

A

Quantity Demanded Qd

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19
Q

If Price goes up Quantity Demanded goes down.

A

Law of Demand

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20
Q

If Price goes down Quantity Demanded goes up.

A

Law of Demand

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21
Q

What is Qd?

A

Quantity Demanded

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22
Q

What is Qs?

A

Quantity Supply

23
Q

A graphical representation of quantity supply.

A

Supply Schedule

24
Q

Graphical representation of a supply schedule that is always consistent with the Law of Supply.

A

Supply Curve

25
Q

The number of goods sellers are willing to supply at a given time.

A

Quantity Supply Qs

26
Q

If Price goes up Quantity Supply goes up.

A

Law of Supply

27
Q

If Price goes down Quantity Supply goes down.

A

Law of Supply

28
Q

What is the Law of Supply?

A

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.

29
Q

What is the Law of Demand?

A

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.

30
Q

A condition where everything is perfectly balanced.

A

Equilibrium

31
Q

A condition where the quantity demanded is greater than the quantity supplied.

A

Shortage

32
Q

A condition where the quantity supplied is greater than the quantity demanded.

A

Surplus

33
Q

The state in which supply and demand balance each other: happy buyers and happy sellers.

A

Market Equilibrium

34
Q

The price point where the supply of goods matches demand.

A

Equilibrium Price

35
Q

The state when there is no shortage or surplus of a product in the market.

A

Equilibrium Quantity

36
Q

An Upward Slopping Positive Slope

A

Supply Curve

37
Q

A Downward Slopping Negative Slope

A

Demand Curve

38
Q

These are Non-Price Factors affecting the Quantity Demanded

A

Determinants of Demand

39
Q

These are Non-Price Factors affecting the Quantity Supply

A

Determinants of Supply

40
Q

These are Affordable Goods

A

Normal Goods

41
Q

These are Expensive Commodities

A

Superior Goods

42
Q

These are goods that complement each other

A

Related Goods

43
Q

These are goods that can be substituted or given an alternative

A

Substitute Goods

44
Q

Give the Three Determinants of Demand

A

Income
Related Goods
Substitute Goods

45
Q

Why is income a Determinant of Demand?

A

The Income Effect
Higher-income higher expenses

Consumption of normal goods goes down
Consumption of superior goods up

46
Q

Consumption of normal goods goes down
Consumption of superior goods goes up

A

The Income Effect

47
Q

It’s an assumption that says “The higher-income higher expenses”

A

The Income Effect

48
Q

A change in the price of one product that complements another can affect the Quantity Demanded for the complementary product.

A

Related Goods Effect

49
Q

A change in the price of one product that has a substitute can affect the Quantity Demanded for the substitute product.

A

Substitute Goods Effect

50
Q

Give the Three Determinants of Supply

A

Technology
Tax
Subsidies

51
Q

Determinant of supply that is responsible for better production due to innovative pieces of machinery.

A

Technology

52
Q

A mandatory charge collected by the government from businesses.

A

Tax

53
Q

Incentives from the government to support businesses.

A

Subsidies

Basic Microeconomics (3 decks)

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