front 1 The Law of Demand | back 1 There is an inverse relationship between price and quantity demanded |
front 2 What are the 3 reasons for the Law of Demand? | back 2 Substitution Effect, Income Effect, Law of Diminishing Marginal Utility |
front 3 Substitution Effect | back 3 Changes in price motivate consumers to buy relatively cheaper substitute goods |
front 4 Income Effect | back 4 Changes in price affect the purchasing power of consumer’s income |
front 5 Law of Diminishing Marginal Utility | back 5 As you continue to consume a given product, you will eventually get less additional utility (satisfaction) from each unit |
front 6 What are the 5 shifters of demand? | back 6 Tastes/Preferences, Number of consumers, Price of Related Goods, Income, Expectations |
front 7 The Law of Supply | back 7 There is a direct relationship between price and quantity supplied |
front 8 What are the 5 shifters of Supply? | back 8 Price of Resources, Number of Producers, Technology, Taxes & Subsidies, Expectations |
front 9 Equilibrium | back 9 Quantity demanded equals quantity supplied |
front 10 Surplus | back 10 Quantity supplied is greater than quantity demanded |
front 11 Shortage | back 11 Quantity demanded is greater than quantity supplied |
front 12 Supply | back 12 the amount of a good or service that is produced |
front 13 Demand | back 13 the amount of good or service that consumers want |
front 14 Quantity Supplied | back 14 the amount of something that producers are willing to sell at a certain price |
front 15 Quantity Demanded | back 15 the amount of something that consumers are willing to buy at a certain price |
front 16 As supply goes up, the supply curve shifts to the _______________________, and the price goes ____________________. | back 16 right, down |
front 17 As supply goes down, the supply curve shifts to the _______________________, and the price goes ____________________. | back 17 left, up |
front 18 As demand goes up, the demand curve shifts to the _______________________, and the price goes ____________________. | back 18 right, up |
front 19 As demand goes down, the demand curve shifts to the _______________________, and the price goes ____________________. | back 19 left, down |
front 20 Supply Shock | back 20 occurs when there's a sudden shortage of some good |