Micro 3
microeconomics
microeconomics
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Cartes-fiches
The demand curve has a .... slope
negative
law of demand is the relation between ... demanded
price and quantity
Why does the demand curve stop at X?
limited marginal utility and time limitations
why does the demand curve intersect Y?
limited income and wealth
what kind of measure is income?
flow
what kind of measure is wealth?
stock
what is another word for wealth
net worth
how is the total value of what a household owns minus what it ows called?
wealth
what is the sum of all household wages, salaries, profits, interest payments etcetera?
income
Demand for Particular Goods
Normal goods: If wealth raises demand..?
Inferior Goods:
What happens if wealth increases with the demand?
What are key characteristics for Substitutes
What are key characteristics of complementary goods?
what are the three factors that determine the combinations of good a household is able to buy
income, wealth and prices
Changes in preferences can and do manifest themselves in ...?
market behaviour
Where does the demand curve shift to if income increases?
Where does the demand curve shift if income rises for normal goods?
What is q in demand?
quantity demanded
What is Q in demand?
total quantity demanded in the market
Supply depends on ... of output
price
the relation between price and quantity of a good supplied is ...
positive
the relation between price and good demanded is...
negative
Cost of production depends on
what is the law of cost of production?
revenue must exceed costs
Supply Curve: shift happens if?
How does a movement along the supply curve develop?
change in price
The condition that exists when quantity supplied and quantity demanded are equal is called...
market equilibrium
At market equilibrium there is no tendency for ... to change
prices
The condition that exists when quantity demanded exceeds quantity supplied at the current price is called?
excess demand
the condition that exists when quantity supplied exceeds quantity demanded at the current price is called?
excess supply
when supply and demand curves shift, the equilibrium price and quantity ...?
change
what are the two main functions of the price mechanism?
what is the "danger" of a price ceiling?
excess demand
what is the "danger" of a price floor?
excess supply
Name 4 alternative rationing mechanisms
which one is the least unfair rationing approach?
price rationiong
what is "the difference between the m aximum amount a person is willing to pay for a good an dits current market price" called?
consumer surplus
what is it called? " The differene between the current market price and the cost of production for the firm"?
producer surplus
what is the sum of consumer and producer surplus called?
total welfare
producer and consumer surplus is greatest where supply and demand vurces intersect at ...?
equilibrium
