Micro

It is the schedule of quantities of a good or service that people are willing and able to buy at different prices .

What a buyer pays for a unit of the specific good or service.

The total number of units purchased at that price.

Table that shows the quantity demanded at each price.

Shows the relationship between price and quantity demanded on a graph.

Schedule of quantities that a person would
purchase at different prices.

Schedule of quantities that everyone in the market would buy at different prices.

As the price rises, the quantity demanded decreases,
and vice versa

if the price increase, what happened to quantity?

quantity demanded and quantity supplied are equal.

It is a point where the supply curve and demand curve cross.

An above-equilibrium price

QUANTITY SUPPLIED
is GREATER than
QUANTITY DEMANDED

An below-equilibrium price.

QUANTITY SUPPLIED
is LESS than
QUANTITY DEMANDEDshift of ths

when the shift of the demand increase, what will happened to

when the shift of the demand decrease, what will happened to

A shift in demand happens when people
want to buy more or less of a product
due to factors like preferences, income,
prices of related goods, population
changes, advertising, seasons,
government policies, demographics,
technology, or unexpected events. These
factors can boost or reduce demand,
affecting businesses and markets.

when the shift of supplies increase what will happened?

when the shift of supplies decrease, what will happen?

A shift in supply occurs when factors like
production costs, technological advancements, government policies, natural disasters, input prices, price expectations, and market dynamics influence a producers willingness and ability to supply a product or
service at different price levels. These factors can lead to changes in the supply curve, affecting the quantity of goods or services available in the market.

A consumer surplus occurs when the
price for a product or service is lower
than the highest price a consumer would
willingly pay.
Formula:
Maximum willing price to pay – Actual
price

A producer surplus occurs when goods are
sold at a higher price than the lowest price
the producer was willing to sell for.
Formula:
Producer Surplus= (Market Price – Minimum
Price to Sell) * Quantity Sold

Occurs when actual or market price is higher than equilibrium price.

where the quantity
demanded is greater than the quantity supplied at the market price.

Causes of Shortage

a government-imposed maximum
limit on the price that can be charged for a
particular product or service. This limit is set below
the equilibrium market price, with the intention of
making the product or service more affordable for
consumers.

This is a fixed limit on the price that can be charged for a good or service.
The price cannot go higher than this limit

is a form of a general subsidy. It's a market regulation set by a particular government
to shield its population from food price inflation by setting a maximum price on the
selected food regardless of the actual production cost and market price of the food.

types of price ceiling

Is a system of laws, administered by a court or a public authority, which aims to
ensure the affordability of housing and tenancies on the rental market for dwellings

government measure usually undertaken to control inflation.
When government imposes a limit on rise of wages by certain percentage or an amount to
both public and private sectors,

the lowest price that may be set for an item or service with maintaining the supply and demand paradigm. The laws of supply and demand naturally determine some price floors, while regulations or other government action determines others.

types of price flooring

A price limit greater than the equilibrium market price. Producers benefit from this type when the higher price compensates for the lower quantity sold. However, consumers suffer because they pay more for less.

A price limit lower than the equilibrium market price. This type doesn’t affect the market. The market price remains the same and so does the quantity demanded and supplied. Therefore, this type of price floor does not affect producers or consumers.

as price rises

factors of production

scarcity

when demand rises and supplies stay the same

when supplies rises and demand stay the same

market price ____ equilibrium price

at equilibrium, quantity demanded is equal to quantity suppliedid

It refers to the quantity of a product or service that a
single producer or seller is willing and able to provide at various prices during a specific period.

It represents the total quantity of a product or
service that all producers or sellers are collectively willing and able to offer at various prices within a particular market over a specific period.

shift in the demand curve to the right

shift in the demand curve to the left

if the supply curve shift to the right (outwards), what will happen?

if the supply curve to the left(inward),what will happen?

when price raised, the total revenue falls. when price lowered , the total revenue rises

when the price raised, the total revenue rises. when the price lowered, the total revenue fall

are all the products and services that see a general rise in demand when income rises.

are the product amd services that see a decrease in demand as income rises

are a set of goods that satisfy more ot less similar want and that can be used in each others place

are thos goods that are neither jointly used or one good provides a sense of accomplishedment or used to add value to another goods

When market price is above equilibrium price,

When quantity demanded is greater than quantity
supplied,

what happens to quantity supplied when price is lowered?

what happens to quantity demanded when prive is raised

when market price is above equilibrium price

a demand schedule id determined by the wishes and abilities of

Whe price elasticity of demand is greater than 1, demand is

price times quantity measures

A positive sign on cross price elasticity of demand indicates that the two products are

The price elasticity of demand for a product is greater if

A tax imposed on a supplier will more likely be passed on to the consumer in the form of price increase if

if the price of a product decreases with the price of a substitute product remaining constant such that the consumer buys more of this product, this is called the

If the price of a product decreases so that the consumer can buy more of it and other products, this is called the

During a very bad recession the nation’s disposable
income fell by 10 percent, while its consumption of
a certain good rose by 5 percent. That good was
good.

Total revenue would be maximized when
elasticity is

. Elasticity of demand is a measure of the responsiveness of __________________to changes in price.

The marginal cost curve intersects the ATC curve at
its

A profit-maximizing fi rm will increase production
when.

The lowest point on a fi rm’s short-run supply curve is
at the

A fi rm will operate at that output where MC equals
MR

When marginal cost is rising but is less than
average total cost, we are defi nitely below the

If a fi rm is producing a level of output at which that
output’s marginal cost is less than the price of the
good,

If the price is between the shut-down point and
the break-even point, the firm is in the

The decision to shut down is made in

When output is 0, fi xed cost is and
variable cost is

A firm will operate in the short run when total revenue exceeds variable costs. T or F

Average variable cost is found by dividing

The salaries paid to people who are in the middle
of three-year guaranteed contracts are

In general, as output rises you first attain

In the short run, a fi rm has two options

Quantity Supplied changes by the same
percentage as the change in price.

When the proportionate change in
supply is more than the proportionate
changes in price.

When the proportionate change in
supply is less than the proportionate
changes in price.

When the supply is perfectly inelastic,
only the price changes with demand,
not the quantity

When demand changes from D1 to D2,
only the quantity changes, not the price.

is the study of how people make decisions
when they purchase, helping businesses and
marketers capitalise on these behaviors by
predicting how and when a consumer will
make a purchase.

A term in economics that
refers to the total
satisfaction or benefit from
consuming a good or
service

The added satisfaction
that a consumer gets from
having one more unit of a
good or service.

An economic law that states that, all else
being equal as consumption increases,
the satisfaction derived from each
addition unit decreases.

The aggregate summation
of satisfaction or
fulfillment that a consumer
receives through the
consumption of goods or
services

The concept that
individuals and
organizations seek to
attain the highest level of
satisfaction from their
economic decisions.

what the firm
pays for producing and
selling its products.

stay the same no
matter how much output
changes.

vary with output

is the cost of
producing one additional unit of
output.

The curve is declining as output
rises

The curve will decline for a while
as output rises and meet the
minimum points then rise

The same in AVC, the curve will
decline, meet the min. points then
rise

is a relationship
between the maximum amounts of output of
a firm can produce and various quantities of
inputs.

Are the inefficiencies that became
endemic in large firms

the economies
mass production which drive down
average total cost

states that in the
short run when variable factors of
production are added to a stock of fixed
factors of production the total marginal
product will initially rise and then fall.

occur in a business when costs per unit of a product decreases as the business expands

when the atc is greater than price l, what will happen to firms

in the short run, firm will __ when the AVC is greater than price

in the short run, The firm will____ if the price is greater than AVC

in the long run, the firm will go out of the business if ____ is grater than price

in the long run, the firm will ___ in business if prive is greater than ATC

Refers to how effectively a society's
scarce resources are used to produce
goods.

Is a situation where firms seek the best
combination of inputs to lower their cost
of production.

Means that economic resources are
distributed in a way that produces the
highest consumer satisfaction relative to
the cost of inputs.

The optimal distribution of resources in
society taking into consideration all the
internal and external costs and benefits.

Involve improving allocative and
productive efficiency over time. This can
mean developing new or better products
and finding better ways of producing
goods and services.

is a market structure with many well-informed
sellers and buyers of an identical product and no barriers to entering or leaving the market.

is a price taker rather than a price maker. Price is set
by industrywide supply and demand; the perfect competitor can take it or leave it.

there would be ____ and no barriers could exist. Anyone with a good amount of stake is welcome.

Everyone knows about every
possible economic opportunity.

the perfect competitor may make a profit or lose
money

If the demand curve is above the ATC curve
at any point, the firm will?

If the demand curve is always below the ATC curve,
the firm will

A firm ____ at peak efficiency when it produces its product at the lowest possible cost.

A firm operates at __
when it produces its product at the lowest
possible cost.

is a market structure in which sellers or buyers have market power over prices, which prevents the market
from operating under perfect competition.

The market consists of one producer (seller or supplier) and has many buyers (consumers).

justify bigness because only a firm with a large output
can produce near the minimum point of its long-run ATC curve.

A monopolistically competitive industry has many firms
selling a differentiated product.

In the long run the monopolistic competitor
makes

the monopolistic competition in the long run the firm will?

is really what stands between perfect competition
and the real world. People differentiate among many similar products.

is a market sector in which very few firms compete or
dominate. It is a highly concentrated market. It does not mean there are just two, three or four competitors. In fact, there could be dozens of them. However, there are only a few dominant ones

measure the proportion of total market share controlled by a given number of firms.

measures the extent to which market share is controlled by a few or many competitors.

National Labor Relations Act

the act that protected employer rights.