Term
| What is a nickname for Determinants of Demand? |
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Definition
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Term
| What is a Determinant of Demand? |
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Definition
| Variables held constant when a demand curve is drawn. |
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Term
| What is Change in Demand? |
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Definition
| When demand changes regardless of change in price at any price. |
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Term
| What are examples of a consumer tastes or preferences? |
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Definition
1.) Health and Exercise Active Lifestyles
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2.) Fear of Accidents
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3.) Fear of Disease
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4.) Changing of Fashion
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5.) Fear of the Good |
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Term
| The number of buyers is directly related to what? |
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Definition
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Term
| What are examples of changes in the number of buyers? |
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Definition
1.) Population Changes
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2.) Communications Improvements
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3.) Status of International Markets
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4.) Life Expectancies
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Term
| What is a Normal Good or Superior Good? |
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Definition
| A good whose demand varies directly with consumer income. |
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Term
| What is an Inferior Good? |
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Definition
| A good who's demand is inversely related to consumer income. |
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Term
| What are examples of Inferior Goods? |
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Definition
1.) Used Clothing
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2.) Re-tread Tires
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3.) Bus Tickets
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4.) Fast Food
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Term
| How can goods be related? |
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Definition
| As either Substitutes or Complements |
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Term
| What are Examples of Substitute Goods? |
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Definition
1.) Apples and Bananas
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2.) Cinema Films and Bluray Disks
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3.) Coke and Pepsi
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Term
| What are Examples of Complementary Goods? |
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Definition
1.) Milk and Cereal
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2.) Coffee and Cream
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3.) Coffee and Donuts
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4.) Coffee and Sugar
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5.) Film and Cameras
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Term
| What are examples of Demand Shifters? |
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Definition
1.) Consumer Tastes and Preferences
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2.) Consumer Expectations about Price
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3.) Number of Buyers
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4.) Consumer Income
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5.) Prices of Related Goods
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Term
| What if the current price equals the expected future price? |
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Definition
| We wouldn't expect any change in demand based on consumer expectation of price. |
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Term
| What if the current price is greater than the expected future price? |
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Definition
| We would expect an increase in current demand based on consumer expectation of price. |
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Term
| What if the current price is less than the expected future price? |
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Definition
| We would expect a decrease in current demand based on consumer expectation of price. |
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Term
| What is an Early Adopter? |
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Definition
| A person who starts using a product or technology as soon as it becomes available. |
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Term
| Is there a relationship between a lack in consumer expectation of future price and current demand? |
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Definition
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Term
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Definition
| A schedule or function showing the various amounts of a product that producers are willing to produce and make available for sale at various prices per unit of time. |
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Term
| What is the law of supply? |
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Definition
| There exists a direct relationship between price and quantity supplied. |
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Term
| Producers produce less products if what happens to the price? |
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Definition
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Term
| Producers produce more products if what happens to the price? |
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Definition
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Term
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Definition
| A firm's total revenue minus a firm's total costs. |
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Term
| What is a symbol for economic profit? |
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Definition
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Term
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Definition
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Term
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Definition
| Factor payment to an entrepreneur, which is one of many costs of production. |
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Term
| What happens when consumers offer a higher price to producers? |
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Definition
| It increases their total revenue, which in turn increases the producer's economic profit. |
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Term
| Producers are fundamentally what? |
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Definition
| Those who maximize profits |
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Term
| What happens when a producer's economic profit is increased? |
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Definition
| It gives the producer a greater incentive to produce. |
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Term
| What are Capacity Constraints (Short Run Production)? |
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Definition
| When Marginal costs of labor increases as productivity decreases due to the large demand forcing the producer to hire more labors with a scarcity of capital. |
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Term
| How does a producer recover a rising marginal cost and declining marginal productivity that is associated with Capacity Constraints (Short Run Production)? |
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Definition
| The consumer must receive higher prices for their product for increased output. |
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Term
| What are two Theoretical Justifications of the Law of Supply? |
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Definition
1.) Producers are those who maximize economic profit.
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2.) Capacity Constraints (Short Run Production)
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