economics unit 2 test

the more you buy of a product, the less eager you are to buy more. less satisfaction

the desire, ability, and willingness to buy a product

graph showing the quantity demanded at each and every price that might prevail in the market. it slopes DOWN and to the RIGHT

there is an inverse relationship between price and quantity demanded

price changes, if the price goes up the quantity demanded goes down

no change in price of product, the demand curve shifts left or right to show an increase or decrease in demand (INSECT)

the quantities that would be offered for sale at all possible prices that could prevail in the market. the higher the price, the greater the quantity

graph showing the tendency of suppliers to offer greater quantities for sale at higher prices (slopes up and to the right)

states that there is a direct positive relationship between price and quantity supplied (price go up, quantity supplied go up)

change in the price of product, if the price goes up the supply goes up

no change in the price of product (TIPSTERS)

the state in which supply and demand balance each other, and as a result prices become stable

the quantity supplied is greater than the quantity demanded at a given price. this causes the price to go down and the quantity demanded to increase

the quantity demanded is greater than quantity supplied at a given price. this causes the price to go up and the quantity demanded to decline

a legal restriction on how high or low a market price may go. a max and min price

the maximum legal price that can be charged. usually results in a shortage

the lowest legal price that can be charged. usually results in a surplus

the nature and degree of competition among firms operating in the same industry (pure competition, monopolistic, etc)

many sellers who sell the same product. no price or non-price competition and it is easy to enter the market (ex: agriculture)

many sellers with some product differentiation. price and non-price competition in advertising (prices may vary because of brand, ex: nike). it is easy to enter the market

few sellers dominate in a particular product. some product differentiation. price and non-price competition in price leadership, in which if one seller lowers their price the rest will follow. it is difficult to enter this market (ex: cars)

only one seller of a particular product that has no close substitutes. they hold extensive control over price and are almost impossible to enter the market with (ex: microsoft)

does not allow unlawful mergers and business practices

passed in 1890, outlaws anything that restraints and monopolies that hinder competition or make competiiton impossible

passed in 1914, gave the government greater power against monopolies. outlawed price discrimination in cases where it might lead to monopoly or lessen competition

based on the general level of skills needed to do a particular kind of job

professional labor, skilled labor, semi-skilled labor, unskilled labor

workers with higher-level skills (doctors, lawyers)

workers who are able to operate complex equipment and who can do their tasks with little supervision (computer technicians, chefs)

workers with mechanical abilities that call for minimal amount of training (operate dishwasher)

workers who lack training to operate specialized machines and equipment (food serving, fruit pickers.)

the Law of Demand has a negative relationship between price and quantity demanded, and the Law of Supply has a positive relationship between price and quantity demanded

income, number of consumers, substitutes, expectations, complements, tastes

technology, inputs, productivity, subsidies, taxes, expectations, regulations, sellers

pure competition, monopolistic competition, oligopoly, pure monopoly,