Supply And Demand

Question 1

Complements?

Answer 1

Products that are used together, so the increase or decrease in demand will result in an increase or decrease in demand for the other

Question 2

Demand?

Answer 2

Willingness to buy a good or service and the ability to pay for it.

Question 3

Demand curve?

Answer 3

A graphic that displays data from the demand schedule,

Question 4

Demand schedule?

Answer 4

A listing of how much of an item an individual is willing to purchase at each price.

Question 5

Equilibrium price?

Answer 5

Price at which the quantity demanded and quantity supplied are equal

Question 6

Fixed cost?

Answer 6

Cost that owners incur no matter how much they produce

Question 7

Law of demand?

Answer 7

Prices decrease-quantity demanded increases.

Price increase- quantity demanded decreases.

Question 8

Law of supply?

Answer 8

Price falls-quantity supplied falls

Price rises-quantity supplied rises

Question 9

Marginal cost?

Answer 9

Extra cost of producing one more unit

Question 10

Marginal product?

Answer 10

Change in total output that results from adding one more worker

Question 11

Price ceiling?

Answer 11

Legal maximum price that sellers may charge for a product

Question 12

Price floor?

Answer 12

Legal minimum price that buyers may pay for a product

Question 13

Profit?

Answer 13

Total revenue-total cost

Question 14

Profit maximizing output?

Answer 14

Level of production at which a business realizes the greatest amount of profit

Question 15

Regulation?

Answer 15

A set of rules or laws designed to control business behavior

Question 16

Substitutes?

Answer 16

Products that can be used in place of other products to satisfy consumer wants

Question 17

Supply?

Answer 17

Willingness and ability of producers to offer goods and services for sale

Question 18

Supply curve?

Answer 18

A graphic that displays the supply schedule

Question 19

Supply schedule?

Answer 19

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

Question 20

Surplus?

Answer 20

Result of quantity supplied being greater than quantity demanded

Question 21

Shortage?

Answer 21

The result of quantity demanded being greater than quantity supplied

Question 22

Total cost?

Answer 22

Sum of the fixed and variable costs

Question 23

Total revenue?

Answer 23

A company’s income from selling its products

Question 24

Variable costs?

Answer 24

Depend on the level of production output

Question 25

Change in demand?

Answer 25

Occurs when something prompts producers to sell different amounts at every price

Question 26

Change in supply?

Answer 26

Occur when something prompts producers to sell different amounts at every price

Question 27

How is revenue calculated?

Answer 27

Price of each unit • number of units sold

Question 28

What factors affect demand? (7)

Answer 28

Price, income, market size, consumer taste, consumer expectations, substitutes, and complements

Question 29

What factors affect supply? (7)

Answer 29

Input costs, labor productivity, technology, government action: taxes or regulations, producer expectations, and number of producers

Question 30

How do business owners decide on the right number of workers?

Answer 30

Profit maximizing output

Question 31

How does a business calculate total profit?

Answer 31

Total revenue-total cost

Question 32

What motivates producers ti increase supple?

Answer 32

Profit

Question 33

What do lower prices encourage?

Answer 33

Consumers to buy

Question 34

What does a surplus indicate?

Answer 34

Decrease in price

Question 35

What does a shortage indicate?

Answer 35

Increase in price

Question 36

When customers demand more goods and services at every price, what will happen to the equilibrium?

Answer 36

It will rise