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SSE 201 - Microeconomics > Unit 4 > Flashcards

Unit 4 Flashcards

1
Q

pertains to the quantity of goods or services that people are ready to buy at a given time, price, and place.

A

Demand

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2
Q

It states that if a price goes up, the quantity demanded will go down. Conversely, if the price goes down, the quantity demanded will go up.

A

Law of Demand

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3
Q

a table that shows the quantity demanded of a good or service at different price levels.

A

DEMAND SCHEDULE

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4
Q

the graphical representation showing the relationship between price and quantities demanded per period.

A

DEMAND CURVE

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5
Q

A demand curve has a negative slope; thus, it slopes _____

A

downward from left to right.

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6
Q

The downward slope indicates the _______ relationship between price and quantity demanded.

A

inverse

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7
Q

If the demand curve shifts to the right, it means the demand ________;

if it shifts to the left, the demand _______.

A

right - increases

left - decreases

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8
Q

Formula for Quantity Demand

A

QD= a-bP

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9
Q

Formula of QD - Parts

A

QD= a-bP

QD- Quantity Demanded – Dependent Variable

P- Price - Independent variable

a- Intercept - Given
b- Slope - Given

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10
Q

QD is missing

A

QD = a-bP

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11
Q

Price is missing

A

P = a-QD/b

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12
Q

FACTORS CAN CAUSE THE DEMAND CURVE TO SHIFT TO THE RIGHT OR SHIFT TO THE LEFT

A
  1. Taste/Preferences
  2. Changing Incomes
  3. Population Change
  4. Substitute Goods
  5. Complimentary Goods
  6. Price Expectations
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13
Q

The demand for goods and services increases when people like or prefer them. Such taste/preferences are greatly influenced by trends, fashion, and advertisements

A
  1. Taste/Preferences
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14
Q

Increasing incomes of households raise the demand for specific goods or services. Usually, people buy more goods when their income increases.

o Normal Goods
o Inferior Goods

A
  1. Changing Incomes
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15
Q

an increasing population leads to an increase in the demand for goods or services.

A
  1. Population Change
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16
Q

are goods that are interchanged with another good; are generally offered at a lower price, which makes it more attractive for buyers.

A
  1. Substitute Goods
17
Q

these are the goods that you cannot consume without the other goods.

A
  1. Complimentary Goods
18
Q

if buyers expect the price of a good or service to rise (or fall) in the future, it may cause the current demand to increase (or decrease).

A
  1. Price Expectations
19
Q

pertains to the quantity of goods or services that firms are ready and willing to sell at a given time, price, and place.

A

Supply

20
Q

If Demand is the consumer’s willingness to ________;

Supply is the willingness of suppliers or producers to _________ goods or services at a given price.

A

consume

produce or sell

21
Q

which states that if the price of a good or service goes up, the quantity supplied for such good or service will also go up; if the price goes down, the quantity supplied also goes down.

A

LAW OF SUPPLY

22
Q

a graphical representation showing the relationship between the price of the product or factor of production and the quantity supplied per period.

A

SUPPLY CURVE

23
Q

The upward slope shows the _______ relationship between the price and quantity.

A

positive

24
Q

In Supply Curve Shift, if it shifts to the right, the supply _______, and if it shifts to the left, the supply _______.

A

increases

decreases

25
Q

FACTORS CAN CAUSE THE SUPPLY CURVE
TO INCREASE OR DECREASE.

A
  1. Technology
  2. Price of Resources
  3. Prices of Other Goods
  4. Number of Sellers
  5. Weather Conditions
  6. Taxes and Subsidies
26
Q

this refers to the techniques or
methods of production

A
  1. Technology
27
Q

this is the cost of
production.

A
  1. Price of Resources
28
Q

the changes in the price
of goods affect the total supply.

A
  1. Prices of Other Goods
29
Q

more sellers of more
factories, means an increase in supply; smaller numbers of sellers or
factories mean less supply.

A
  1. Number of Sellers
30
Q

Bad weather, such as typhoons, drought, or
natural disasters, reduces agricultural products’
supply while good weather has an opposite
impact.

A
  1. Weather Conditions
31
Q

most subsidies can reduce the cost of
production while certain taxes can increase the
cost of production.

A
  1. Taxes and Subsidies
32
Q

Formula for QS

A

QS = c+dP

33
Q

Formula for P in QS

A

P = c+QS/d

34
Q

is the state of balance between demand
and supply. It is the buyer and seller’s general agreement
at a particular price and a particular quantity.

A

Equilibrium

35
Q

the meeting of supply and demand in a market.

A

MARKET EQUILIBRIUM

36
Q

The price agreed by the seller to offer its good or service
for sale and for the buyer to pay for it

A

EQUILIBRIUM MARKET PRICE

37
Q

Specifically, it is
the price at which the quantity demanded of a good is
precisely equal to the quantity supplied. This mutually
desired amount is called the

A

equilibrium quantity

38
Q

FORMULA
Equilibrium:

A

Qd = Qs

SSE 201 - Microeconomics (4 decks)

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