Economics Microeconomics Flashcards

Questions and Answers

On a supply and demand graph, equilibrium is the point where

the supply curve begins

the two curves meet (correct)

the demand curve ends

the supply curve ends

The chart compares the price of graphic T-shirts to the quantity demanded. This chart shows the link between

interest in a product and the price a consumer pays

interest in a product and the price a producer pays

amount of a product and the price a producer pays

amount of a product and the price a consumer pays (correct)

The graph examines the market for graphic T-shirts. Based on the graph, which event could cause the change shown?

A product becomes less popular and fewer customers purchase it (correct)

A product is restocked on store shelves and is ready for customer purchase

A product becomes more popular and more customers purchase it

A product sells out of stores and customers can no longer purchase it

A factor that most directly affects the demand for automobiles is

the individual tastes and preferences of buyers Signup and view all the answers

How do changing prices affect supply and demand?

As price decreases, supply decreases, but demand increases Signup and view all the answers

According to the law of demand, price and quantity move

along a track in opposite directions Signup and view all the answers

A market supply schedule shows

the prices and quantity in an entire market Signup and view all the answers

How might a drop in price for washing machines affect the demand for dryers?

The demand for dryers would most likely increase as the price for washing machines dropped Signup and view all the answers

How do lower prices tend to affect demand?

They tend to increase the interest in a product Signup and view all the answers

The total amount of a product available in a market at a given price is called the

supply Signup and view all the answers

Study Notes

Equilibrium in Supply and Demand

Equilibrium occurs at the intersection of supply and demand curves, indicating a balance between the quantity supplied and quantity demanded.

Demand Curve Relationships

A chart showing the price of graphic T-shirts illustrates the relationship between the quantity of a product and the price a consumer is willing to pay.

Market Changes and Popularity

Decreased popularity of a product leads to a decline in customer purchases, affecting its market presence, as seen in demand graphs.

Demand Influencers for Automobiles

The primary factor influencing automobile demand is the tastes and preferences of consumers, shaping their willingness to buy.

Price Effects on Supply and Demand

Price changes result in opposite effects: as prices decrease, supply typically decreases while demand increases, reflecting consumer behavior and market dynamics.

Law of Demand

According to the law of demand, price and quantity demanded move in opposite directions; as prices fall, demand increases, and vice versa.

Market Supply Schedule

A market supply schedule provides insights into the prices and quantities offered by all producers in a given market, encompassing the entire market supply.

A decrease in washing machine prices likely boosts demand for dryers, illustrating the interconnectedness of complementary goods in consumer purchasing decisions.

Impact of Lower Prices on Demand

Lower prices generally lead to increased consumer interest and demand for products, encouraging higher market activity and sales.

Supply Definition

The term "supply" refers to the total quantity of a product available in the market at a specific price, crucial for understanding market dynamics.

Description

Test your knowledge of microeconomics concepts with these flashcards. Dive into essential terms like equilibrium and the relationship between price and quantity demanded. Perfect for quick revisions and reinforcing key ideas.