Supply and Demand

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  1. What is demand?
    explains the behavior of buyers (consumers)
  2. What does demand refer to?
    Demand refers to how much consumers are willing and able to buy
  3. What is the 2 elements in Demand
    1. The desire for goods and services

    2. The capacity to pay them
  4. What is the law of Demand
    States that as the price of a good increases, then the quantity demanded decreases
  5. what does the demand curve look like?
    Image Upload
  6. Supply: what is supply?
    The concept of supply is a way of summarizing the behavior and goals of sellers
  7. What does supply refer to?
    How much producers are willing to provide consumers for purchase.
  8. The relationship in supply
    Supply is defined as the relationship between prices of a good and the corresponding quantity that producers are willing to supply.
  9. What is the law of Supply?
    The law of supply states that as the price of a good increases then the quantity supplied will increase. As the price of good decreases, supply decreases.
  10. What does the supply curve look like?
    Image Upload
  11. What is market equilibrium?
    There is no shortage or no excess of a product.

    The point of intersection of demand and supply curves
  12. What does an market equilibrium curve look like?
    Image Upload
  13. Shift in demand
    As long as the only thing changing is price, the demand curve remains in the same position.
Card Set:
Supply and Demand
2013-06-17 01:53:13

Revision for economy
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