Market Structures and Equilibrium Review

The amount of stuff that is produced by firms and offered for sale.

• Supply

• Demand

• Equalibrium

• Disequalibrium

The person or business that provides a good or service.

• Supplier

• Consumer

High prices give businesses an incentive to produce. Low prices give producers a reason to reduce production.

• Law of Supply

• Equilibrium

• Disequalibrium

• Supply Curve

Government increases rules which reduces supply.

• Technology

• Regulation

• Number of Sellers

• Supply Shock

• Education

If suppliers believe a market will be strong they will make more products.

ex: smartphones and virtual reality.

• Technology

• Change in Producer Expectations

• Number of Sellers

• Supply Shock

• Education

An increase or decrease in _______ can cause an increase or decrease in the supply of goods/services.

ex: fast food, apps

• Technology

• Change in Producer Expectations

• Number of Sellers

• Supply Shock

• Education

Increases in human capital will increase the ability to produce.

ex: colleges, tech schools

• Technology

• Change in Producer Expectations

• Number of Sellers

• Supply Shock

• Education

A sudden and unexpected shortage due to natural disaster or human mistake.

ex: earthquakes, fire, hurricane.

• Technology

• Change in Producer Expectations

• Number of Sellers

• Supply Shock

• Education

The point of balance where demand and supply come together.

• Equilibrium

• Supply

• Demand

• Prices

• Disequalibrium

When the quantity supplied is not equal to the quantity demanded.

• Equilibrium

• Supply

• Prices

• Disequalibrium