| • Equilibrium | The equilibrium point refers to the point at which the quantity demanded of a good or service equals the quantity supplied of that good or service, resulting in a market clearing price.
At this point, there is no excess demand or excess supply, and the market is in a state of balance. |
| • Equilibrium | The equilibrium point refers to the point at which the quantity demanded of a good or service equals the quantity supplied of that good or service, resulting in a market clearing price.
At this point, there is no excess demand or excess supply, and the market is in a state of balance. |
| • Equilibrium | The equilibrium point refers to the point at which the quantity demanded of a good or service equals the quantity supplied of that good or service, resulting in a market clearing price.
At this point, there is no excess demand or excess supply, and the market is in a state of balance. |
| • Equilibrium | The equilibrium point refers to the point at which the quantity demanded of a good or service equals the quantity supplied of that good or service, resulting in a market clearing price.
At this point, there is no excess demand or excess supply, and the market is in a state of balance. |
| NA | NA |
| • Demand is; | Demand refers to the willingness and ability of consumers to buy a particular good or service at a given price and time. |
| what does demand represent? | It represents the quantity of a product or service that consumers are willing and able to buy at various prices, holding all other factors constant. |
| the demand curve is | the entire relationship between the price of the product and the quantity demanded. |
| Quantity demanded (QD): is | amount of a good or service that consumers are willing to buy at a particular price. It is not necessarily the quantity actually bought! |
| what is the law of demand? | The higher the price of a good, the smaller the quantity demanded:↑P → ↓QD
The lower the price of a good, the greater the quantity demanded: ↓P → ↑QD |
| what is the result of the law of demand is being used | movement along the curve. |
| name 5 Determinants of Demand: | 1. change in buyers taste
2. change in the number of buyers
3. change in income
4. change in prices of related goods
5. change in consumer expectations |
| what are substitute goods? and give an example | are products or services that can be used in place of each other. When the price of one good increases, the demand for its substitute typically increases as well, because consumers switch to the more affordable option.
tea and coffee |
| Complementary goods | Complementary goods are products or services that are often used together. When the demand for one good increases, the demand for its complement usually increases as well.
sigarets and lighter |
| what is Supply? | Supply refers to the quantity of a good or service that producers are willing and able to sell at a given price and time. |
| What does supply represent? | It represents the amount of a product or service that producers are able and willing to sell at various prices, holding all other factors constant. |
| The supply curve: | the entire relationship between the quantity supplied and the price |
| Quantity supplied (QS) refers to | a point on the supply curve. The quantity supplied at a particular price.
It is not necessarily the quantity actually sold! |
| what is the Law of supply? | The higher the price of a good, the greater the quantity supplied: ↑P → ↑QS
The lower the price of a good, the smaller the quantity supplied: ↓P → ↓QS |
| The lower the price of a good, the ..... the quantity supplied: | The lower the price of a good, the smaller the quantity supplied: ↓P → ↓QS |
| The higher the price of a good, the ...... the quantity supplied: | The higher the price of a good, the greater the quantity supplied: |
| explain Higher Price, Greater Quantity Supplied: | When the price (P) of a good increases, suppliers are willing to produce and sell more of that good because higher prices usually mean higher potential profits. This is depicted by the upward arrow (↑) for both price and quantity supplied (QS). |
| explain Lower Price, Smaller Quantity Supplied: | Conversely, when the price (P) of a good decreases, suppliers are less inclined to produce and sell as much of that good because lower prices mean lower potential profits. This is shown by the downward arrow (↓) for both price and quantity supplied (QS). |
| name 6 determinants for supply | 1. change in resource price
2. change in technology
3. changes in taxes and subsidies
4. changes in prices of other goods
5. change in producer expectations
6. change in number of suppliers |
| • Equilibrium | The equilibrium point refers to the point at which the quantity demanded of a good or service equals the quantity supplied of that good or service, resulting in a market clearing price.
At this point, there is no excess demand or excess supply, and the market is in a state of balance. |
| When quantity demanded and quantity supply meet, there is an ... | equilibrium |
| At the Equilibrium Point we have: | The equilibrium price (PE).
The equilibrium quantity (QE). |
| the ...... is the best deal available for both buyers and sellers | equilibrium |
