Supply and Demand: Shifters, Curves, and Market Dynamics (Video)

Vocabulary flashcards covering key concepts from the lecture notes on supply, demand, shifters, and market adjustments.

Supply curve

A graph showing the relationship between the price of a good and the quantity producers are willing to supply, holding all else constant.

Demand

The relationship between the price of a good and the quantity consumers are willing to buy, influenced by price and non-price factors.

Supply schedule

A table listing the quantities producers are prepared to supply at each possible price, ceteris paribus.

Non-price factor (shifter)

A factor other than price that shifts a curve (supply or demand), changing the quantity supplied or demanded at every price.

Shift left (supply)

A leftward shift of the supply curve, indicating a decrease in supply (lower quantity supplied at each price).

Shift right (supply)

A rightward shift of the supply curve, indicating an increase in supply (higher quantity supplied at each price).

Price of inputs

The cost of production inputs (e.g., wages, materials); higher input prices raise costs and reduce supply, shifting the supply curve left.

Wages (as input price)

Compensation paid to workers; a major production input; higher wages raise production costs.

Quantity supplied

The amount of a good producers are willing to offer for sale at a specific price.

Equilibrium

The price-quantity pair at which quantity supplied equals quantity demanded.

Toilet paper market (example)

An illustrative market used to discuss how supply and demand respond to shifts in factors like prices and costs.