Demand
What is the fundamental idea that describes a consumer's desire and ability to pay for a good or service?
What is demand?
What is the willingness and ability of producers to offer goods and services for sale?
What is supply?
What is the term for the point where the supply and demand curves intersect?
What is equilibrium?
When consumer incomes increase and they buy more of a particular good, the demand curve shifts in this direction.
What is to the right?
This is a good that is often used together with another good.
What is a complementary good?
This principle states that as the price of a good increases, the quantity demanded will decrease, and vice versa.
What is the Law of Demand?
This principle states that as the price of a good increases, the quantity supplied will also increase.
What is the Law of Supply?
At equilibrium, the quantity supplied is equal to this.
What is the quantity demanded?
A new, more efficient technology for producing smartphones will cause the supply curve for smartphones to shift in this direction.
What is to the right?
This term describes demand that is not very sensitive to a change in price.
What is inelastic?
Name two factors other than price that cause the entire demand curve to shift.
What are income, consumer tastes, population, or expectations?
A government payment to a business or market is known by this term.
What is a subsidy?
This market condition occurs when the price is set below the equilibrium price.
What is a shortage?
What happens to the equilibrium price and quantity of gasoline if a major oil pipeline is shut down unexpectedly?
What is an increase in price and a decrease in quantity?
This term refers to the change in consumption that results from a change in a consumer's real income.
What is the income effect?
When the price of a substitute good decreases, what happens to the demand for the original good?
What is a decrease in demand?
If the government imposes new regulations on manufacturing, what happens to the supply curve?
What is a shift to the left (a decrease in supply)?
What is the market-clearing price, also known as the price where there is neither a surplus nor a shortage?
What is the equilibrium price?
If a popular celebrity starts promoting a new brand of cereal, what happens to the market for that cereal?
What is an increase in demand?
The total amount of money a company receives from selling its goods or services.
What is total revenue?
If the price of hot dogs falls, what happens to the demand for hot dog buns?
What is an increase in demand?
What happens to the supply of a product if the cost of raw materials increases?
What is a decrease in supply?
If both the supply and demand curves shift to the left, what can we predict will happen to the equilibrium quantity?
What is a decrease in equilibrium quantity?
A fear of a future price increase for a product will cause the current demand to do this.
What is increase?
This phrase means "all other things held constant" and is used in economics to analyze the effect of one variable.
What is ceteris paribus?