Demand
The amount of a good or a service consumers will buy at a particular price
Demand
as the price of a good increases what will go up?
Supply
An elasticity of 0 means something is
perfectly inelastic
the intersection of supply and demand is called
Equilibrium
When the price of a good increases; what happens to the demand
demand decreases
True or False: supply goes up as price goes up
true
when something is relatively inelastic it means that is
not very sensitive to price change
True or false: the price of a good is most stable at equlibrium
true
When the price of a good decreases what will happen to the demand?
demand increases
What can happen if a producer supplies too much of a product
surplus
An elasticity of 1.7 would be considered
relatively elastic
What are the two main causes for disequilibrium?
shortage and surplus
When will someone want to search for substitutes for olive oil?
when the price of olive oil is high
what can happen if a producer supplies too little of a product?
shortage
name an item that would be perfectly inelastic
medicine
water
food
what do you do to the price to fix a shortage?
higher it
What are two factors that impact demand:
any 2 of the following;
price
substitutes
compliments
elasticity
necessity
want
luxuory
Why does a producer want to supply more at a higher price?
an elasticity of .7 would mean something is
relatively inelastic
what do you do to the price to fix a surplus?
lower it