How Prices are Determined

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Contraction of demand occurs when a rise in price leads to...
less being demanded
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Extension of demand occurs when a reduction in price leads to...
more being demanded
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Movement along the demand curve is caused by...
A change in price
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What does the supply curve tell us?
Interaction of price and supply
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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
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What does equilibrium mean?
When planned demand is the same as planned demand, so all products are sold
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Excess demand is found __ the two curves
under
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Excess supply is found __ the two curves
over
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What is the equation for revenue?
Revenue = Price x Quantity Sold
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What happens to demand for iPhones when the cost of production of Androids decreases?
It will decrease, because the price of Androids will decrease
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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
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Other cards in this set

Card 2

Front

Extension of demand occurs when a reduction in price leads to...

Back

more being demanded

Card 3

Front

Movement along the demand curve is caused by...

Back

Preview of the front of card 3

Card 4

Front

What does the supply curve tell us?

Back

Preview of the front of card 4

Card 5

Front

The law of supply isn't just the amount provided, but also...

Back

Preview of the front of card 5
View more cards

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