Unit 6 Quiz Part 2 Flashcards
What happens in a state of equilibrium?
• In a state of equilibrium, the supply of a product can meet the demand for a product at a particular price.
What happens if the demand for a product goes up?
As consumers buy up the product, the supply — or availability — of the product drops. This drives up the price of the product because more consumers compete for the limited supply available.
What happens when the price for a product goes up?
Fewer consumers can afford to buy it. This drives down demand for the product. Fewer consumers buy the
The product, so the supply — or availability of the product — goes up
What happens if supply goes up?
If there are more products available than consumers want to buy, producers cut prices to encourage consumers to buy more. The lower price encourages consumers to buy more, so demand for the product goes up
How do supply and demand connect to the quality of life?
They affect the prices of products we buy, the availability of products, and jobs connected to creating products.
What are the factors of supply and demand?
Supply, Demand, and Price?
What is competition?
In economics, rivalry among producers to sell products to consumers
What is a monopoly?
A monopoly happens when one producer controls all supply of a product or service
What is a crown corporation?
A company owned by Canada’s government to provide products and services to Canadians
What are characteristics of a crown corporation?
Provide essential services
Promote economic development
To support Canadian culture and identity
What are examples of crown corporations?
Air Canada
Petroleum Canada
CBC
Canada Post
What does the law of supply and control?
The market economy
Who creates the products?
Producers
Who decides the price of products?
Consumers
What does the law of supply state?
As the price of a product increases producers will be willing to more of that product. As the price decreases producers will want to produce less
