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An economic system which relies on the price mechanism to allocate resources

An economic system which relies on the price mechanism to allocate resources. A Market Economy. A movement along a demand curve as a result of a fall in the price of a product. Change in Quantity Demanded. A shift in the demand curve to the right. Increase in demand.

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An economic system which relies on the price mechanism to allocate resources

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  1. An economic system which relies on the price mechanism to allocate resources A Market Economy

  2. A movement along a demand curve as a result of a fall in the price of a product. Change in Quantity Demanded

  3. A shift in the demand curve to the right • Increase in demand

  4. The willingness and ability to sell a product • Supply

  5. A Decrease in Quantity Supplied • A movement along a supply curve as a result of a fall in the price of the product

  6. Market Supply • The ______ ______ of a product will consist of the amount supplied by all the individual producers competing to supply that product.

  7. What is the difference between economic cost and accounting cost? • The inclusion of the dollar value of factors of production that a firm does not pay money for.

  8. What is the best alternative forgone? Opportunity cost

  9. Market Equilibrium • This is where the quantity demanded of a product is equal to the quantity supplied.

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