1.05 Economic notes Price and Equilibrium Factors can affect supply and demand. Equilibrium Price/Quantity/point: When supply and demand are plotted on the same graph, the curves will intersect to determine an equilibrium price and equilibrium quantity.(Equilibrium Point.)
As the curves shift, the equilibrium point will vary, changing the price and quantity. The market for any good or service is usually dynamic. Suppliers adjust their production quantities to "clear the market," or meet this equilibrium point. Market price When suppliers change a price, it will lead to only a change in quantity demanded and quantity supplied. The whole curve does not shift . If the price charged is not equilibrium, the market will suffer either a shortage or a surplus, depending on whether the price is higher or lower than equilibrium. 1.06 Economic Notes Four Functions of Money
! Currency is a form of money !
Medium of Exchange : Money is accepted in exchange for another item. Measure of Value: Money is used to describe the worth of an item. Standard: Money has a consistent numerical measurement. Store of Value: Money holds its value. Value does not change according to to look/quality of the dollar bill. Counterfeiting: When people try to make copies of money, this is called counterfeiting .
How could U.S. currency lose value? Too many legal bills are printed and in circulation. Too many people are counterfeiting print money and using it
As the curves shift, the equilibrium point will vary, changing the price and quantity. The market for any good or service is usually dynamic. Suppliers adjust their production quantities to "clear the market," or meet this equilibrium point. Market price When suppliers change a price, it will lead to only a change in quantity demanded and quantity supplied. The whole curve does not shift . If the price charged is not equilibrium, the market will suffer either a shortage or a surplus, depending on whether the price is higher or lower than equilibrium. 1.06 Economic Notes Four Functions of Money
! Currency is a form of money !
Medium of Exchange : Money is accepted in exchange for another item. Measure of Value: Money is used to describe the worth of an item. Standard: Money has a consistent numerical measurement. Store of Value: Money holds its value. Value does not change according to to look/quality of the dollar bill. Counterfeiting: When people try to make copies of money, this is called counterfeiting .
How could U.S. currency lose value? Too many legal bills are printed and in circulation. Too many people are counterfeiting print money and using it
