Supply and Demand Flashcards
What gradient does supply have on a supply and demand graph?
The supply curve has a positive gradient
What gradient does demand have on a supply and demand graph?
The demand curve has a negative gradient
What is it called when the supply and demand cross over on the supply and demand graph?
The equilibrium
What is a supply and demand graph?
A graph that visually demonstrates the relationship of supply and demand of a product.
What is (generally) represented on the x-axis of a supply and demand graph?
The quantity of a product
What is (generally) represented on the y-axis of a supply and demand graph?
The price of a product
How does a production possibilities frontier work?
It represents the possibilities of output for 2 products provided they share the same resource pool
[resources that can be allocated to one product or another but not both]
