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Chapter 12 Terms Aggregate Demand and Aggregate Supply Flashcards

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❶If the demand starts at D2 , and decreases to D1 , the equilibrium price will decrease, and the equilibrium quantity will also decrease.




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Start studying Determinants of Supply. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

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If producers expect prices to increase, supply will increase. Expect prices to decrease, and supply will decrease.

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Supply for a good is said to be _____ if the quantity supplied responds only slightly to changes in the price. For each determinant of demand, explain how the demand curve can shift both to the right and to the left PRICE-The law of demand states that when prices rise, the quantity demanded falls. This also means that, when prices drop, demand will rise.

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The determinants of supply are any factors other than the product's price that have effect on the supply of a good or service and cause the supply curve to shifts. The demand curve shows the quantities of a product that will be purchased at various possible prices, other things equal. Learn supply and demand supply demand determinants with free interactive flashcards. Choose from different sets of supply and demand supply demand determinants flashcards on Quizlet.