Quia - Demand--chapter 4 (2024)

ABElasticityThe measure of the impact of price on supplyUpwardSupply curves slope_____ from left to rightSupplyProducers want to sell more at higher prices than lower prices.Marginal costUsually rises as the rate of production increases.PriceWhat consumers payChange in supplyWhat happens when new businesses enter a marketOpportunity CostThe best alternative given up when making a choiceDemandThe various amounts you're ready to buy at different pricesExpectationsWhat you believe will happenMarket supplyThe sum of all producers' supplies in a given market.MoneyReduces the cost of exchange (medium of exchange)ElasticWhen a price change causes the demand to be largeInelasticWhen a price change causes no change in the demandElastic supplyExists when the price effect is substantial.Decrease in supplyPeople want to sell less of a product at all possible prices.Price effectProducers want to see more at higher prices than at lower prices.Expectations of higher future prices for a product.Can cause today's supply curve t oshift to the left.More efficient equipment.Causes supply curve to shift to the right.Inelastic supplyExists when the price effect is small.Complementary goodsGoods often used together.Full employmentThere should be a job for everyone ready, willing, and able to work.Economics growthThe average living standard should improve as the output of goods and services is increased.Pillars of a free economy.Private property, price system, competition and entrepreneurship.IncentiveSame as motivation; can be $$$$.ProfitMoney remaining after deducting total costs from total revenue.ConsumersMembers of households