Microeconomics: Supply, Demand, and Price (unit test) – Flashcards
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A possible result of disequilibrium is
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excess demand
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On a graph, when demand ---- the demand curve shifts to the left.
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decreases
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Both a demand curve and a demand schedule show how
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prices effect consumer demand
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Which best describes the relationship between consumers and producers?
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They interact with each other.
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Producers hoping to earn profits supply goods and services to
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consumers
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Which explains how elastic demand would most likely affect consumer demand?
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People might buy a less expensive substitute good.
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Excess supply is created when price or ---- move away from the equilibrium point.
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quanity
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A chart that shows the connection between consumer demand and price is a
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demand schedule
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Which events could cause the change in supply shown on this graph? Check all that apply.
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A producer goes out of business.
A natural disaster causes production to drop.
A resource needed to produce more of the good has became scarce.
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Equilibrium occurs when supply and demand coordinate to
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set prices and production
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If supply for a product is low but demand is high, what most likely needs to happen to achieve equilibrium?
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the supply needs to be raised
