Supply And Demand Flashcards
1
Q
4 economic agents
A
Producer
Consumer
Government
Workers
2
Q
Marginal utility
A
Change in satisfaction from consuming an extra unit
3
Q
Total utility
A
Total satisfaction from a given level of consumption
4
Q
Shift in demand
A
Income
Population
Advertising
Change in substitute price
Change in complementary goids
5
Q
Shifts in supply
A
Wages-cost of production
Raw materials
Government-taxes
Subsides
Technology
Natural factors-floods
6
Q
Equilibrium?
A
Demand and supply meet
7
Q
Opportunity cost
A
The cost of the next alternative foregone when a choice is made
