Basics
This term describes how much of a good or service consumers are willing and able to buy.
What is demand?
A rise in income usually increases demand for these kinds of goods.
What are normal goods?
When there’s more demand than supply, the result is called this.
What is a shortage?
When gasoline prices rise, people often buy more of these.
What are fuel-efficient cars?
This describes how much of a good producers are willing and able to sell.
What is supply?
If the price of Coca-Cola goes up, demand for Pepsi may increase because they are these types of goods.
What are substitutes?
When supply is greater than demand, this occurs.
What is a surplus?
During winter, the demand for these often spikes, raising prices.
What are coats?
This economic law states that as prices rise, quantity demanded decreases.
What is the law of demand?
Goods you buy less of when income rises—like instant noodles—are called these.
What are inferior goods?
If there’s a sudden increase in supply but demand stays the same, prices usually do this.
What is fall?
During the COVID-19 pandemic, supply of this essential hygiene item ran low due to panic buying.
What is toilet paper?