Supply
What does supply represent?
The producers
What does demand represent?
The consumers
Ballet shoes are high in demand
False
What does income effect say?
What does change in consumer income mean?
This says when people are richer, they buy more
The law of supply states that when price goes _____, then quantity supplied goes _____
up, up
What are some examples of current products that are high in demand?
Sol de Janeiro perfume, Owala water bottles, etc.
Normal goods means that income is indirectly related to demand
False - Income is directly related to demand
- Consumer income increases, demand would also increase for a product
What is an example of the substitution effect?
When prices go up for butter, people buy more margarine
What products are examples of change in consumer preferences?
Silly bands and fidget spinners
A movement in along the supply curve is called a change in __________.
Quantity demanded
The "Law of Demand" states that when price goes ____, quantity demanded goes _____
Up, down
Inferior goods means that income is inversely related to demand
True!
Someone's income increases, demand for the product would decrease
What is an example of a substitute good for popcorn?
Candy
A change in the price of vegetables would cause a change in demand for vegetable dip
What could cause a shift in the supply curve?
Changes in price, technology, price of goods, number of producers, taxes, global factors
High
A shift in the demand curve could be a result of advertisement
True
What is an example of a complementary good for popcorn?
Butter, soda, etc
What does change in the number of buyers mean?
More people equals more demand
What are some ways governments can have an impact on supply?
Taxes, regulation, subsidies
A movement along the demand curve is called a change in __________
Quantity demanded
True
What is another name for price ceiling?
Price cap
What is an example of a change in the price of substitutes?
A change in the price of snowboards will cause a change in demand for snow skis