Front
Law of Demand
Back
Inverse relationship between price and quantity demanded
As price rises, quantity demanded falls, ceteris paribus.
Public Deck
Microeconomics Principles
Master microeconomics with 50 cards covering supply/demand, elasticity, market structures, and consumer behavior with real-world examples.
AnyFlashcards50 cards
Preview
Front
Law of Supply
Back
Direct relationship between price and quantity supplied
As price rises, quantity supplied increases as producers seek higher profits.
Front
Market Equilibrium
Back
Point where quantity demanded equals quantity supplied
Graphically represented by the intersection of the supply and demand curves.
Front
Movement along the demand curve vs. Shift
Back
Price changes cause movements; non-price factors cause shifts
A shift moves the entire curve left or right due to factors like income or tastes.
Front
Shortage
Back
Quantity demanded exceeds quantity supplied
Occurs when the current price is below the equilibrium price.
Front
Surplus
Back
Quantity supplied exceeds quantity demanded
Occurs when the current price is above the equilibrium price.
Front
Price Ceiling
Back
Legal maximum price set below equilibrium
Leads to persistent shortages and black markets (e.g., rent control).
Front
Price Floor
Back
Legal minimum price set above equilibrium
Leads to persistent surpluses (e.g., minimum wage).
Front
Substitute Goods
Back
Goods used in place of one another
An increase in the price of one leads to an increase in demand for the other.
Front
Complementary Goods
Back
Goods used together
An increase in the price of one leads to a decrease in demand for the other.
+ 40 more cards
Related Flashcard Decks
Ready to study?
Sign up for free to copy this deck and start learning with spaced repetition.
Get started for free