Flashcards on Demand and Supply

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What is demand?

Demand refers to the quantity of a product or service that consumers are willing and able to buy at a given price during a specific period of time.

What is supply?

Supply refers to the quantity of a product or service that producers are willing and able to offer for sale at a given price during a specific period of time.

What is the law of demand?

The law of demand states that there is an inverse relationship between the price of a good or service and the quantity demanded, ceteris paribus (all other factors held constant).

What is the law of supply?

The law of supply states that there is a direct relationship between the price of a good or service and the quantity supplied, ceteris paribus.

What is the equilibrium price?

The equilibrium price is the price at which the quantity demanded equals the quantity supplied, resulting in a market balance.

What factors can cause a shift in the demand curve?

Factors such as changes in consumer income, prices of related goods, consumer preferences, population, and advertising can cause a shift in the demand curve.

What factors can cause a shift in the supply curve?

Factors such as changes in production costs, technological advancements, government regulations, and number of suppliers can cause a shift in the supply curve.

What is elasticity of demand?

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

What is elasticity of supply?

Elasticity of supply measures the responsiveness of quantity supplied to changes in price.

What is a price ceiling?

A price ceiling is a government-imposed maximum price that can be charged for a product or service.

What is a price floor?

A price floor is a government-imposed minimum price that must be charged for a product or service.

What is a surplus?

A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price.

What is a shortage?

A shortage occurs when the quantity demanded exceeds the quantity supplied at a given price.

What is the role of government in managing demand and supply?

The government can intervene in the market through various policies such as price controls, subsidies, taxes, and regulations to manage demand and supply.

What is the concept of elasticity of demand?

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

What is the concept of elasticity of supply?

Elasticity of supply measures the responsiveness of quantity supplied to changes in price.

What is demand?

Demand refers to the quantity of a product or service that consumers are willing and able to buy at a given price during a specific period of time.

What is supply?

Supply refers to the quantity of a product or service that producers are willing and able to offer for sale at a given price during a specific period of time.

What is the law of demand?

The law of demand states that there is an inverse relationship between the price of a good or service and the quantity demanded, ceteris paribus (all other factors held constant).

What is the law of supply?

The law of supply states that there is a direct relationship between the price of a good or service and the quantity supplied, ceteris paribus.

What is the equilibrium price?

The equilibrium price is the price at which the quantity demanded equals the quantity supplied, resulting in a market balance.

What factors can cause a shift in the demand curve?

Factors such as changes in consumer income, prices of related goods, consumer preferences, population, and advertising can cause a shift in the demand curve.

What factors can cause a shift in the supply curve?

Factors such as changes in production costs, technological advancements, government regulations, and number of suppliers can cause a shift in the supply curve.

What is elasticity of demand?

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

What is elasticity of supply?

Elasticity of supply measures the responsiveness of quantity supplied to changes in price.

What is a price ceiling?

A price ceiling is a government-imposed maximum price that can be charged for a product or service.

What is a price floor?

A price floor is a government-imposed minimum price that must be charged for a product or service.

What is a surplus?

A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price.

What is a shortage?

A shortage occurs when the quantity demanded exceeds the quantity supplied at a given price.

What is the role of government in managing demand and supply?

The government can intervene in the market through various policies such as price controls, subsidies, taxes, and regulations to manage demand and supply.

What is the concept of elasticity of demand?

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

What is the concept of elasticity of supply?

Elasticity of supply measures the responsiveness of quantity supplied to changes in price.

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