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