Cards (12)

    • The equilibrium price is the price at which the quantity demanded equals the quantity supplied
    • If the supply of a product decreases, the equilibrium price will rise
    • How does technology typically influence prices?
      Lowers them
    • What happens to prices when supply is inelastic and demand increases?
      Rise more
    • The equilibrium price balances the interests of both consumers and producers.
      True
    • Market forces are factors that affect supply and demand, leading to price changes.

      True
    • Price elasticity measures the responsiveness of demand or supply to changes in price.

      True
    • Government intervention always leads to efficient resource allocation.
      False
    • What is the definition of "price"?
      Amount a consumer pays
    • What happens to the equilibrium price of electric cars if environmental awareness increases demand?
      Rises
    • Match the market force with its example:
      Demand ↔️ Higher demand for electric cars
      Supply ↔️ Lower supply of coffee beans
      Consumer preferences ↔️ Increased preference for organic food
      Technology ↔️ Advances in solar panel manufacturing
    • With inelastic demand, prices rise more in response to a decrease in supply
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