economics 4-6
lead is an important input in the production of crystal. if the price of lead decreases, all else equal, we would expect the supply of
crystal to increase
the price where quantity supplied equals quantity demanded is called the
equilibrium price
you have decided to purchase a new mustang convertible. A friend tells you that ford will be offering a 3000$ rebate on mustangs starting next month. as a result of this information your demand
for mustangs shifts left today
a market demand curve reflects
how much all buyers are willingg and able to buy at each possible price
catalina rents 5 movies per month when the price is 3.00$ each and 7 movies per month when the price is 2.50. catalina has demonstrated the
law of demand
in a competetive market, each seller has llimited control over the price of his product because
other sellars are offering similar products
when constructing a demand curve
price is on the vertical axis and quantity is on the horizontal axis
other things equal, when the price of a good rises the
quantity supplied of the good rises
an advance in production technology will
shift the supply curve to the right
suppose that a decrease in the price of X results in less of a good Y sold. This would mean that X and Y are
substitute goods
in a free market who determines how much a good will be sold and the price at wich is sold
suppliers and demanders together
markets move toward equilibrum of supply and demanded because of
the action of buyers and sellers
when evaluating differences or similarities between an increase in supply and an increase in quantity supplied we know that
the former is a shift of the curve and the latter is a movement along the curve
what is not a determinate of demand
the prices of the inputs used to produce the goods
when the price of a good or service changes,
there is a movement along a stable demand curve
at equilibrium price
there wil be nno pressure on price to rise or fall
suppose there is an increase in input prices we would expect supply to
to decrease
an example of complementary goods would be
hamburgers and fries
a demand curve illustrates the
negative relationship between price nad quantity demanded
if a seller in a competitive market chooses to charge more than the markey price then
buyers will buy elsewhere
if a surplus exists in a market we know that the actual price is
above equilibrium price and quantity supplied is greater than quantity demanded
if a study by the AMA found that brown sugar caused weight loss while white sugar caused weight gain we would see
an increase in demand for brown sugar and a decrease in demand for white sugar