Supply and Demand Flashcards
What is supply
The amount of goods & services that are willing & able to produce at a Given Price at a Given Time
What is demand
The amount of goods & services that are willing & able to purchase at a Given Price at a Given Time
what kind of relationship does supply price have
Positive
what kind of relationship does Demand price have
Negative
what causes Movement along the supply curve
Price
what causes movement along the demand curve
Price
what are the factors that cause a shift in supply
Productivity
Weather
Cost of production
Technology
(P.W.C.T)
what are the factors that cause a shift in demand
income
Price of other goods
Advertising
Legislation
Tastes & Fashion
(I.P.L.A.T)
Define market supply
The supply of a product by all producers in the market
Define Joint supply
When firms produce more than one product together
Define competitive supply
when a firm can use its resources to produce more than one product
Define individual supply
price of one producer
Define individual demand
The demand for a product by a consumer
Define market demand
The demand for a product by all consumers in a market
Define Joint demand
Goods which are demanded together
Define competitive demand
Demand for Goods are in competition with eachother
Define composite demand
Demand for Goods with Multiple uses
which way does the demand curve slope
Downwards
which way does the supply curve slope
Upwards
Define Consumer surplus
Difference between what a consumer is prepared to pay for a good & the price they actually pay
Define Producer surplus
Difference between the price a producer is prepared to supply a good for and the price they actually receive.
Define ceteris paribus
All other things being equal
Define market equilibrium
supply = demand
Define market disequilibrium
Supply doesn’t equal demand
What happens to consumer surplus if price increases
The consumer surplus will decrease
What happens to producer surplus if price increases
The producer surplus will increase
What happens to consumer surplus if price Decreases
The consumer surplus will increase
What happens to producer surplus if price Decreases
The producer surplus will decrease
