Demand
This law states that as the price of a good goes up, the quantity demanded goes ____.
Down
This law states that at higher prices, producers are willing to sell ____ of a good.
more
The specific point on a graph where the Supply and Demand curves meet is called _______
Market Equilibrium
In the circular flow, these are the individuals who own the factors of production and consume goods.
Households
Define "Want"
Goods, services, or experiences that are not essential for basic survival or daily functioning but are desired
If the price of Pepsi goes up, the demand for Coke (a competing product) increases because they are s_______ good.
Substitute
____ used to make a product, such as raw materials and labor.
Costs / Inputs
Surplus is when the quantity supplied is ____ than demanded.
greater
The movement of payments for goods and resources is called ____
money
Define "Goods"
physical items—such as food, clothing, cars, and electronics
C_______ goods are usually "bought together," like peanut butter and jelly.
Complementary
f a new invention allows a factory to produce twice as many shoes in an hour, the supply curve ________
Moves to the right / increases
If the price of a popular toy is set too low and every store runs out, the market is experiencing a s____.
shortage
The movement of physical items like labor, land, and finished products is ____flow
real
Define "Law of demand"
As the price of a good or service increases, the quantity demanded by consumers decreases
On a graph, the demand curve always slopes in this direction.
Downward (or to the bottom right)
On a graph, the supply curve always slopes in this direction.
Upward
When there is more to supply than demanded, a store will usually _____ their prices
lower / drop / decrease
While households send labor to firms, firms send _____ back to households in exchange for that labor.
Wages
Define "equilibrium price"
The market price where the quantity of goods or services supplied matches the quantity demanded
If you get a raise at work, what happens to your demand curve?
The curve shifts to the right / demand increases
If the government gives a payment to a business to encourage them to produce more, it is called a s____.
subsidy
In a shortage, the ____ demanded is greater than supplied.
quantity
List two things households provide to help firms
Land, Labor, and Capital
Define "The study of economics"
A study about making choices when resources are limited