Demand
Supply
Elasticity
Equilibrium
Goverment
100
As prices increase, consumers will buy less. As prices decrease, consumers will buy more.
What is the law of demand?
100
The higher the price, the larger the quantity produced. The lower the price, the lower the quantity produced.
What is the law of supply?
100
A measure of how consumers react to a change in price.
What is elasticity of demand?
100
Equilibrium.
What is the point at which quantity demanded and quantity supplied are equal?
100
A government payment that supports a business or market.
What is a subsidy?
200
Consumers react to the change in a good's price by consuming less of that good and more of other goods.
What is the substitution effect?
200
Costs that can change month-to-month.
What are variable costs?
200
A measure of the way quantity supplied reacts to a change in price.
What is elasticity of supply?
200
When quantity demanded is greater than quantity supplied.
What is a shortage (excess demand)?
200
A tax on the production or sale of a good.
What is an excise tax?
300
This displays the quantities demanded at each price by all consumers.
What is a market demand schedule?
300
The change in output from hiring an additional worker.
What is the marginal product of labor?
300
A small increase in price has a large effect on supply.
What is elastic supply?
300
When quantity supplied is greater than quantity demanded.
What is a surplus (excess supply)?
300
Government intervention in a market that affects the production of a good.
What is regulation?
400
Income, consumer expectations, population, and consumer tastes and advertising.
What factors cause a shift in the demand curve?
400
This event would cause some producers to produce less and others to exit the market.
What is a decrease in price for a good?
400
Total revenue - total costs.
What is total profit?
400
The financial and opportunity costs consumers pay when searching for a good or service.
What are search costs?
400
A maximum price that can be legally charged for a good or service.
What is a price ceiling?
500
The increase in demand for one causes an increase in demand for the other.
What are complementary goods?
500
The most profitable level of output for a firm.
What is the point where marginal revenue (price) is equal to marginal cost?
500
The percentage change in quantity demanded is exactly equal to the percentage change in price.
What is unitary elastic?
500
Interactions between buyers and sellers always push the market towards this.
What is market equilibrium?
500
A price floor for hourly employee rates.
What is the minimum wage?
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