Term
| How do prices connect markets in an economy? |
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Definition
| Prices connect things in an economy because if the price goes up on a common product that means not as many people will be able to buy that product, and if not as many people buy that product then not as much money is circulating into the economy. Also, changes in one market create a ripple effect that is felt through prices in another market. |
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Term
| How does price affect a seller’s decision to produce a product? |
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Definition
| If the buying price of a product is too high and they cant make a profit off of it then there not going to choose that product. In other words, when demand for a product decreases, the price decreases. When the supply of a product increases, the price decreases. |
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Term
| How has the real value of minimum wage changes in relation to the actual minimum wage? |
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Definition
| The actual value of minimum wage compared to what it should be is 8.50 compared to 26.00. At the pic of minimum wage, it was about 26.00 dollars, and right now with the 8.50, it is not even close to a sustainable wage. If you were to just make that you couldn’t even buy an apartment. The real value of minimum wage is not even close to what it should be as a fair living wage. |
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Term
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Definition
| there’s only a certain amount and once there used up, but they’re very efficient |
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Term
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Definition
| the price that suppliers and customers agree on and how many things are going to be sold for that price |
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Term
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Definition
| anti gauging laws when there are more things demanded than added its a shortage, like before a hurricane when everyone needs gas that’s a law so you cant make gas like 5$ a galleon it can go up but only to a limit. |
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Term
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Definition
| a floor is above equilibrium so you cant lower the wages to get a job because of the price floor |
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Term
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Definition
| an event that suddenly changes the price of a commodity or service. may be caused by a sudden increase or decrease in the supply of a particular good. this sudden change affects the equilibrium price |
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Term
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Definition
| when quantity demanded is more than quantity supplied |
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Term
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Definition
| when quantity supplied is more than quantity demanded |
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Term
| Increase/Decrease in supply |
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Definition
| a shift in the supply curve left or right creates a new equilibrium |
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