Market — definition?
Place for exchange of goods/services.
Demand — role?
Determines how much consumers want at various prices.
Price elasticity of demand — formula?
% change in Q / % change in P.
Market — definition?
Exchange platform for goods/services.
Law of Demand — relationship?
Inverse between price and demanded quantity.
Price Elasticity of Demand — measure?
Demand responsiveness to price changes.
Market Equilibrium — point?
Supply equals demand.
Demand curve — slope?
Downward sloping.
Supply curve — slope?
Upward sloping.
Surplus & Shortage — cause?
Price above/below equilibrium.
Answer 9 questions on Understanding Market Mechanics.
1. What does the law of demand state about the relationship between price and quantity demanded?
2. Which factor is NOT a typical cause of shifts in the demand curve?
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