Supply & Demand: Qs vs Qd, Surplus, Shortage & Equilibrium

Front

As a buyer consumes more and more of a product his marginal utility (MU) will ____________ and the price the buyer is willing and able to pay for the next unit will ______________.

Back

decrease... ...decrease

Front

The law of demand states that

Back

as price increases, quantity demanded decreases (and vice versa)

Front

Which of the following graphs shows an increase in Quantity demanded?

Back

Front

Which of the following graphs shows an increase in Demand?

Back

Front

The law of supply states that

Back

as price increases, quantity supplied increases

Front

As a seller produces more and more of a product her opportunity cost (OC) will ____________ and the price the seller expects to receive for the next unit will ______________.

Back

increase... ...increase

Front

Which of the following graphs shows a decrease in Supply?

Back

Front

Which of the following graphs shows an increase in Quantity supplied?

Back

Front

When the quantity supplied is equal to the quantity demanded

Back

the market is in equilibrium

Front

When the quantity supplied (Qs) is greater than the quantity demanded (Qd), there is a

Back

surplus