econ 4A
the quantity supplied of a good, service, or resource equals the quantity demanded at the _____________ quantity
equilibrium
the non-price determinants or other factors that affect supply are:
held constant for any given supply curve
when the price of a good, service, or resources decreases...
the quantity supplied decreases
a situation in which the quantity of output supplied is greater than the quantity of output demanded at the current market price
surplus
when the supply of a good increases:
the good becomes less expensive, steers paribus
a shortage occurs when...
the quantity of output demanded is greater than the quantity of output supplied at the current market price
non-price determinants are held ________ for any given demand curve
constant
for a market to reach equilibrium...
-firms must be able to monitor inventories -firms must be able to change the prices of their goods -consumers need information about different suppliers' prices
other factors remaining constant, if a non-price determinant of supply changes:
-the market will not be in equilibrium -the supply curve shifts to the left or right -an entirely new supply relationship is created
all other factors held constant, when a non-price determinant of supply changes:
-the supply curve shifts to the left or right -an entirely new supply relationship is created -the market adjusts to a new equilibrium price and quantity
shortages are usually the result of:
-unforeseen events that disrupt supply -price controls that do not allow markets to adjust
a good will become more affordable when...
The supply curve shifts to the right, causing the price to fall.
a non-price determinant of demand is...
a characteristic of demand for a good, service, or resource other than its own market price
____________ results in increased scarcity and inefficiency in the production of a good or service
disequilibrium
the market-clearing price is the same as the ____________ price
equilibrium
if both demand and supply change simultaneously, the effect on either price or quantity will be ___________
indeterminate
when the market is in equilibrium, the price that consumers pay and that producers receive exactly balances the ____________ marginal benefit and marginal cost of consuming and producing a good or service
marginal
other factors remaining constant, when the ___________ of a good increases, the quantity supplied increases.
price
when the _________ of a good changes, the quantity demanded changes
price
surplus
quantity demanded <<< quantity supplied
