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ECON 2106 > videos 15-17 > Flashcards

videos 15-17 Flashcards

extra credit

1
Q

Competitive Equilibrium

A

when quantity supplied equals quantity demanded

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2
Q

Equilibrium

A

situation where neither consumers or firms any incentives to change their behavior

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3
Q

Excess Demand

A

difference between quantity demanded and quantity supplied when consumers demand a greater quantity than producers are willing and able to supply

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4
Q

Below the equilibrium point on the graph, as prices ______, excess demand ________.

A

Rise, Shrinks

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5
Q

Bidding Mechanism

A

process where unsatisfied buyers try to change the price of a good so to guarantee that they are able to obtain it

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6
Q

Excess Supply

A

difference between quantity supplied and quantity demanded when producers supply greater quantity than consumers are willing to buy

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7
Q

surplus is equal to…

A

excess suppy

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8
Q

the demand curve is ________ sloping.

A

downward

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9
Q

the supply curve is ________ sloping.

A

upward

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10
Q

the point where the demand curve and the supply curve cross it the ____________ point.

A

competitive equilibrium point

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11
Q

The _________ pushes prices toward a stable ______________.

A

Bidding Mechanism, Competitive Equilibrium

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12
Q

Excess Demand is represented on the _______ part of the graph.

A

bottom part

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13
Q

If the price of of substitute goods increases then who is affected??

A

buyers

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14
Q

Price of substitute goods increases so demand curve shifts to the ________

A

left

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15
Q

Increase in prices and an increase in demand moves the demand curve ________.

A

leftward

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16
Q

If consumer income, price of substitute goods, price of complementary goods, expectations, input prices, and/or technology, what must be done to the graphs?

A

They must be redrawn.

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17
Q

First step to solving how a graph is shifted is answering…?

A

Who is affected by the change?? Buyer or seller?

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18
Q

The second step in how to shift a graph is answering …?

A

How will the change affect the curve?

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19
Q

the third question to answer when adjusting a graph is…?

A

What happens to the equilibrium??

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20
Q

If a buyers is affected then the _____ curve is shifted

A

supply

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21
Q

When a competitive equilibrium is established, it leaves ____________ for the market to adjust.

A

no incentive

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22
Q

comparative statics

A

the analysis of what happens when one market variable causes the competitive equilibrium to adjust.

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23
Q

bidding process makes the shifted curve reach ___________.

A

Equilibrium point

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24
Q

supply curve is by the change in…??

A

substitute goods prices

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25
Q

Comparative Statics means…

A

comparing one state with another state

26
Q

there is an _________ in supply whenever there is an increase in sellers in the market.

A

supply

27
Q

decrease in supply makes the supply curve shift…?

A

inward

28
Q

the comparative statics situations are…

A

demand curve shifts outward or inward

the supply curve shifts outward or inward

29
Q

the bidding mechanism works differently in each situation to change the _________.

A

competitive equilibrium

30
Q

demand curve can shift outwards because…?

A

decrease in price of complementary goods or increase in price of substitute goods.

31
Q

demand curve shifts inwards because…?

A

complete oposite of outward shift…decrease in income for a normal good.

32
Q

supply curve shifts outward because..?

A

input prices decrease

33
Q

supply curve shifting inward means

A

quantity decreases and price increases

34
Q

supply curve shifting outward means??

A

quantity increases and price decreases

35
Q

demand curve shifting outwards means??

A

quantity increases and price decreases

36
Q

demand curve shifting inwards means??

A

quantity decreases and price increases

37
Q

If the price of of substitute goods increases then who is affected??

A

buyers

38
Q

Price of substitute goods increases so demand curve shifts to the ________

A

left

39
Q

Increase in prices and an increase in demand moves the demand curve ________.

A

leftward

40
Q

If consumer income, price of substitute goods, price of complementary goods, expectations, input prices, and/or technology, what must be done to the graphs?

A

They must be redrawn.

41
Q

First step to solving how a graph is shifted is answering…?

A

Who is affected by the change?? Buyer or seller?

42
Q

The second step in how to shift a graph is answering …?

A

How will the change affect the curve?

43
Q

the third question to answer when adjusting a graph is…?

A

What happens to the equilibrium??

44
Q

If a buyers is affected then the _____ curve is shifted

A

supply

45
Q

When a competitive equilibrium is established, it leaves ____________ for the market to adjust.

A

no incentive

46
Q

comparative statics

A

the analysis of what happens when one market variable causes the competitive equilibrium to adjust.

47
Q

bidding process makes the shifted curve reach ___________.

A

Equilibrium point

48
Q

supply curve is by the change in…??

A

substitute goods prices

49
Q

Comparative Statics means…

A

comparing one state with another state

50
Q

there is an _________ in supply whenever there is an increase in sellers in the market.

A

supply

51
Q

decrease in supply makes the supply curve shift…?

A

inward

52
Q

the comparative statics situations are…

A

demand curve shifts outward or inward

the supply curve shifts outward or inward

53
Q

the bidding mechanism works differently in each situation to change the _________.

A

competitive equilibrium

54
Q

demand curve can shift outwards because…?

A

decrease in price of complementary goods or increase in price of substitute goods.

55
Q

demand curve shifts inwards because…?

A

complete oposite of outward shift…decrease in income for a normal good.

56
Q

supply curve shifts outward because..?

A

input prices decrease

57
Q

supply curve shifting inward means

A

quantity decreases and price increases

58
Q

supply curve shifting outward means??

A

quantity increases and price decreases

59
Q

demand curve shifting outwards means??

A

quantity increases and price decreases

60
Q

demand curve shifting inwards means??

A

quantity decreases and price increases

ECON 2106 (4 decks)

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