Microeconomics 2
Basics of Supply and Demand
Basics of Supply and Demand
Set of flashcards Details
| Flashcards | 17 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 17.11.2012 / 24.06.2020 |
| Licencing | No Copyright (CC0) |
| Weblink |
https://card2brain.ch/box/microeconomics_2
|
| Embed |
<iframe src="https://card2brain.ch/box/microeconomics_2/embed" width="780" height="150" scrolling="no" frameborder="0"></iframe>
|
Supply curve
Relationship between the quantity (x) of a good that producers are willing to sell and the price (y) of the good
demand curve
Relationship between the quantity of a good that
consumers are willing to buy and the price of the good.
substitutes
Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other.
complements
Two goods for which an increase in the price of one leads to a decrease in the quantity demanded of the other.
equilibrium (market clearing price)
Price that equates the quantity supplied to the quantity demanded.
market mechanism
Tendency in a free market for price to change until the market clears.
surplus
Situation in which the quantity supplied exceeds the quantity demanded.
shortage
Situation in which the quantity demanded exceeds the quantity supplied.
