Basic Economics: Microeconomics Review #2

The amount of a good or service suppliers are willing and able to bring to the market.

When the amount supplied changes while the price stays the same.

When the price of a good changes the amount supplied can change. It is represented as a movement along the demand curve.

When the quantity supplied increases, the curve will shift....

When the quantity supplied decreases, the curve will shift to the left.

When the price increases, the quantity supplied will increase. When the price decreases the quantity supplied will decrease

When supply and demand are graphed, this is where the curves cross and supply and demand are equal.

This is the price that should be charged in order to have no goods and services left over in the market which is wasteful. It is found at equilibrium

While there is an inverse relationship between price and demand, there is a ____________________ relationship between price and supply

When the price of the factors of production change, it can cause the amount supplied to change and shift the curve to the right or left.

When car manufacturers began using robots, they could produce more cars, thus shifting to the curve to the right.

Apple produced the first smartphone, but many other companies soon started to make them, thus shifting to the curve to the right.

Money provided by the government to corporations which allow them to produce a good or service at a competitive price. 2/3 of all oil produced in the US takes place only due to government financial support

President Trump plans to decrease taxes on Corporations from 35% to 25%. The belief is that less taxes will allow US companies to expand, hire more people, and produce more goods and services.

When Henry Ford created the Moving assembly line it allowed to him to create over 10 million Model T's.

President Trump has overturned many environmental policies, including lifting a freeze on new coal leases on public lands and ending a mandate for federal agencies to include greenhouse gas emissions in environmental impact statements. This will allow US companies to produce more goods and services at a cheaper price

The study of individual consumers and producers

The willingness and ability of consumers to purchase a consumer good or service

As price increases demand decreases. As price decreases, demand increases

A chart showing how many will be supplied by producers at specific prices. It is used to graph the supply curve.