Supply & Demand Review (2024/25)

Front

If Supply OR Demand INCREASE then the entire curve shift to the

Back

RIGHT

Front

If Supply OR Demand DECREASE then the entire curve shifts to the

Back

LEFT

Front

What will cause a CHANGE in Demand?

Back

Any one of the six shifters of demand (income, price of a subsitute/complement, expectations, etc)

Front

What will cause a CHANGE in Supply? A change in price, Any one of the six shifters of supply (cost of inputs, susbisdies, regulations, taxes, etc)

Back

Any one of the six shifters of supply (cost of inputs, susbisdies, regulations, taxes, etc)

Front

What does the law of demand state?

Back

As price increases, the quantity demanded decreases (and vice versa)

Front

A decrease in quantity demanded

Back

moves from right to left (up) the original demand curve

Front

The upward slope of the supply curve illustrates that

Back

as price increases, quantity supplied increases

Front

Where does the quantity demanded EQUAL the quantity supplied?

Back

equilibrium price

Front

A change from Point A to Point B represents a(n):

Back

decrease in quantity demanded.

Front

A change from Point A to Point E represents a(n):

Back

decrease in demand.