03: Supply & Demand

What is a market?

What are the three main type of people in the market?

How do you describe the behavior of buyers?

What is the substitution effect of a price increase?

How do you describe the behavior of sellers?

What does the supply & demand curve looks like on the same graph?

What is a surplus?

What is a shortage?

What is the equilibrium price?

What point is the market always moving towards?

What does a “shift” in the demand curve mean?

What causes the demand curve to shift?

What does a movement along the demand curve mean?

What is the difference between “normal” and “inferior” goods?

What does a “shift” in the supply curve mean?

What causes the supply curve to shift?

What does movement along the supply curve mean?

What is the price for each of the resources in an economy?

What happens to the equilibrium point when the demand curve shifts?

What happens to the equilibrium point when the supply curve shifts?

What happens when there is a change in both demand and a supply?

What causes prices to rise and fall?

What role does prices play in an economy?

What is a price ceiling?

What is a price floor?

What is supply constraint?

What are two things a supply constraint causes?

What is consumer surplus?