Supply And Demand

Question 1

Demand

Answer 1

The willingness to buy a good or service and the ability to pay for it. (They movie in different directions)

Question 2

Total Revenue

Answer 2

A company’s income from selling its products.

Question 3

Demand Curve

Answer 3

Graphic that displays data from demand schedule.

Market demand curve displays data from the market demand schedule.

Question 4

Supply Curve

Answer 4

Graphic that displays data from supply curve.

Market supply curve displays data from the market supply scheduled.

Question 5

Demand Schedule

Answer 5

List of how much an item an individual is willing to purchase at every place.

Market schedule shows how much all customers are willing to purchase at each price.

Question 6

Supply Schedule

Answer 6

Lists of how much of a good or service a producer is willing to offer at each price.

Market supply schedule lists how much all producers are willing to offer.

Question 7

Law Of Supply

Answer 7

• price decreases, supply decreases

* price increases, supply increases

Question 8

Law Of Demand

Answer 8

• price decreases, demand increases

* price increases, demand decreases

Question 9

Price Floor

Answer 9

Legal minimum price for a good or service.

Question 10

Price Ceiling

Answer 10

Legal maximum price for a good or service.

Question 11

Substitutes

Answer 11

Products used in place of other products to satisfy needs or wants.

Question 12

Compliments

Answer 12

Products used together.

Question 13

Marginal cost

Answer 13

Extra cost of producing one more unit.

Question 14

Marginal Product

Answer 14

Change in total output brought about by adding one more worker.

Question 15

Fixed Costs

Answer 15

Costs that the owner incurs no matter how much they produce.

Question 16

Variable Costs

Answer 16

Costs dependent upon the level of production output.

Question 17

Surplus

Answer 17

Results when the quantity supplied is greater than the quantity demanded.

Usually indicates prices are too high.

Question 18

Shortage

Answer 18

Results when the quantity demanded is greater than the quantity supplied.

Usually indicates prices are too low.

Question 19

Equilibrium Price

Answer 19

The price at which the individual quantity demanded and individual quantity supplied are equal.

Question 20

How is total revenue calculated?

Answer 20

By output quantity multiplied by total revenue.

Question 21

What factors affect demand?

Answer 21

Willingness to pay. 
Ability to pay. 
Market size. 
Consumer taste. 
Consumer expectations.

Question 22

What factors affect supply?

Answer 22

Input costs. 
Labor: Productivity. 
Technology. 
Government Action: Taxes, Regulation, etc...
Producer Expectations. 
Number Of Producers.

Question 23

Supply

Answer 23

The willingness and ability of producers to offer goods and services. (They move in the same direction)