How Prices are Determined 0.0 / 5 ? EconomicsHow Prices are Determined (Part 1/2)GCSENone Created by: gizmosupremacyCreated on: 16-12-23 16:36 Contraction of demand occurs when a rise in price leads to... less being demanded 1 of 11 Extension of demand occurs when a reduction in price leads to... more being demanded 2 of 11 Movement along the demand curve is caused by... A change in price 3 of 11 What does the supply curve tell us? Interaction of price and supply 4 of 11 The law of supply isn't just the amount provided, but also... the ability and willingness of a firm to provide goods and services at each price level over time 5 of 11 What does equilibrium mean? When planned demand is the same as planned demand, so all products are sold 6 of 11 Excess demand is found __ the two curves under 7 of 11 Excess supply is found __ the two curves over 8 of 11 What is the equation for revenue? Revenue = Price x Quantity Sold 9 of 11 What happens to demand for iPhones when the cost of production of Androids decreases? It will decrease, because the price of Androids will decrease 10 of 11 What happens to demand of DVD players when the cost of production of DVDs increases? It will increase, because the price of DVDs will decrease 11 of 11
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