Please enable JavaScript.
Coggle requires JavaScript to display documents.
Econ Unit 2 Test (Supply (Technology (easier and cheaper to produce),…
Econ Unit 2 Test
Supply
-
-
-
Input Prices
if it costs more to be produced, less will be produced
-
-
-
-
-
-
-
Demand
-
Demand curve shifters
Income
as people buy more money, they buy more stuff
-
-
-
-
-
-
-
-
Elasticity
measures how sensitive productrs are to price changes, or how much a price change will cause change in quantity supplied or quantity demanded
-
-
elastic ex.
-
toothpaste: people still kinda need toothpaste, even if it costs more than it used to
-
Shortage
when price is too low, there is excess demand, which results in a shortage
-
-
-
-
Surplus
-
when price is too high, there is is more supplied than demanded, which results in a surplus
-
Price Controls
price ceiling
-
-
shifts demand curve to the right, supply curve to the left
-
shifts demand curve to the left, supply curve to the right
-
-
-
-
-
Private vs. Public Goods
private goods
excludable
if you can't pay, you can't use the product
rival in consumption
if one person uses one of the goods, no one else can use that good
-
Public Goods
-
nonrival in consumption
many people can use it at the same time, and if one person uses it once, another can use it afterwards
-