Supply and Demand Flashcard

Front

Supply

Back

The maximum amount of a product that sellers are willing and able to provide over some time period at various prices

Front

According to the law of demand, what happens when the price of a favorite candy drops?

Back

Oliver and Evelyn would want to buy more candy (As prices decrease, quantity demanded increases)

Front

What does the scenario of Abigail and Jose running a lemonade stand illustrate?

Back

The relationship between price and quantity demanded

Front

What is the law of supply?

Back

As prices increase, quantity supplied increases

Front

Avery discovers a new method to make lemonade that reduces production cost. What happens to the supply of their lemonade?

Back

It increases

Front

What happens to the supply of Avery's lemonade when the price of Abigail's orange juice falls?

Back

It remains the same

Front

What effect would a subsidy have on Avery's lemonade supply?

Back

It increases supply

Front

What happens to the supply curve for a product when the number of sellers in the market increases?

Back

It increases

Front

What happens to the demand for an inferior product when income increases?

Back

It decreases.

Front

What happens to the demand for a product when consumers expect it to be more expensive in the future?

Back

It increases.