Determinants of Supply and Demand, Circular Flow of Economics

States that as prices rise, consumers demand less of a good or service.

• law of demand

• law of supply

• circular flow diagram

• minimum wage

• rent control

_ other than price may shift supply and demand

• Determinants

• price

• law of demand

• law of supply

• circular flow diagram

As buyers and sellers seek the best deals available in the market, they set prices through the interaction of _.

• supply and demand

• Determinants

• price

• law of demand

• law of supply

_ is the total amount of a good or service available to consumers in a market. ±It may also refer to the amount of a good that a particular producer is willing to produce at a given price.

• Supply

• equilibrium price

• lowest

• highest

• supply and demand

What happens to the price of a product when the demand for it increases but the supply remains the same?

• The price decreases

• The price increases

• The price stays the same

• The product becomes free

_, such as the costs of raw materials are a determinant of supply.

• Input prices

• Government policy

• Supply

• equilibrium price

• lowest

±_ may reduce the costs of production or increase the speed of production, and thus increase supply. It is a determinant of supply.

• Technology

• Time

• market size

• Input prices

• Government policy

°_ is the quantity of a good or service demanded by all consumers for a certain good in a market.

• Market demand

• Demand

• An increase in supply not caused by a change in price

• A decrease in supply not caused by a change in price

• Example of a supply curve

_ happen when the quantity demanded exceeds to quantity supplied at a market price.

• Shortages

• correct price of the goods or services they produce

• total revenue test

• longer

• importance of the cost

Point B represents

• Product Market

• Factor Market

• Individuals

• Businesses