Podcast
Questions and Answers
Demand represents the willingness and ability of consumers to purchase goods or ______.
Demand represents the willingness and ability of consumers to purchase goods or ______.
services
As the price of a product increases, the quantity demanded ______.
As the price of a product increases, the quantity demanded ______.
decreases
The graphical representation of the relationship between price and quantity demanded is called the ______ curve.
The graphical representation of the relationship between price and quantity demanded is called the ______ curve.
demand
The willingness and ability of producers to sell goods or services is referred to as ______.
The willingness and ability of producers to sell goods or services is referred to as ______.
As the price of a product increases, the quantity supplied ______.
As the price of a product increases, the quantity supplied ______.
The supply function is generally represented as Qs = c + dP, indicating a ______ relationship.
The supply function is generally represented as Qs = c + dP, indicating a ______ relationship.
The interaction of demand and supply determines market ______.
The interaction of demand and supply determines market ______.
A tabular representation of demand is called a demand ______.
A tabular representation of demand is called a demand ______.
The direct relationship between price and quantity supplied is depicted in the supply ______.
The direct relationship between price and quantity supplied is depicted in the supply ______.
Consumers' purchasing power and budget constraints are key factors influencing ______.
Consumers' purchasing power and budget constraints are key factors influencing ______.
Flashcards
Demand
Demand
The willingness and ability of consumers to buy goods or services at different prices.
Supply
Supply
The willingness and ability of producers to sell goods or services at different prices.
Law of Demand
Law of Demand
The relationship between price and quantity demanded. Higher prices reduce the quantity demanded.
Law of Supply
Law of Supply
The relationship between price and quantity supplied. Higher prices lead to a greater quantity supplied.
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Demand Curve
Demand Curve
A graph showing the relationship between price and quantity demanded. Usually slopes downwards.
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Supply Curve
Supply Curve
A graph showing the relationship between price and quantity supplied. Usually slopes upwards.
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Demand Function
Demand Function
A mathematical equation that shows the relationship between price and quantity demanded.
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Supply Function
Supply Function
A mathematical equation that shows the relationship between price and quantity supplied.
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Market Equilibrium
Market Equilibrium
The point where the demand and supply curves intersect. This represents the equilibrium price and quantity.
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Demand Schedule
Demand Schedule
A table showing the relationship between the price of a good and the quantity demanded at each price level.
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Demand
- Demand is the value consumers place on goods and services, considering their purchasing power and budget constraints.
- The demand curve shows the inverse relationship between price (P) and quantity demanded (Qd). As price increases, quantity demanded decreases.
Supply
- Supply represents the willingness and ability of producers to sell a good or service.
- Producers will sell more at higher prices.
- The supply curve demonstrates a direct relationship between price (P) and quantity supplied (Qs). As price increases, quantity supplied increases.
Demand and Supply Schedules
- Demand schedules and supply schedules are tables showing the relationship between price and quantity demanded/supplied.
Demand and Supply Curves
- Demand curves and supply curves graphically depict the relationship between price and quantity demanded/supplied.
- Demand curves slope downward.
- Supply curves slope upward.
Laws of Demand and Supply
- The law of demand states that as price increases, quantity demanded decreases.
- The law of supply states that as price increases, quantity supplied increases.
Demand and Supply Functions
- Demand functions express the relationship between quantity demanded and price mathematically.
- Supply functions express the relationship between quantity supplied and price mathematically.
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