ECON Ch. 4

Supply schedule

A table showing the relationship between the price of a good and the amount of it that sellers are willing and able to supply at various prices

Demand schedule

A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices

Demand curve

A graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices

Supply curve

A graphical object showing the relationship between the price of a good and the amount that sellers are willing and able to supply at various prices

Determinants of Supply • Price of inputs • Production technology • Number of producers • Expectations of producers

Determinants of supply

• Price of a related good (complement or substitute) • Income of consumers • Tastes of consumers • Number of consumers • Expectations of consumers

Factors That Determine Demand:

lower, offer higher prices

If a shortage exists in the car market, then the current price must be ____________ than the equilibrium price. For the market to reach equilibrium, you would expect buyers to _________________ .

quantity demanded

The amount of a good that buyers are willing and able to purchase at a given price

Quantity supplied

The amount of a good that sellers are willing and able to supply at a given price

Law of supply

The claim that, other things being equal, the quantity supplied of a good increases when the price of that good rises

Law of Demand

The claim that, with other things being equal, the quantity demanded of a good falls when the price of that good rises