Supply
Demand
Goods
Elasticity
Misc.
100
The law of supply states that, other things equal, the quantity supplied of a good _____ when the price of the good ______.
Increases; Increases
100
The law of demand states that, other things equal, the quantity demanded of a good ______ when the price ______.
What is decreases; increases
100
How can you tell when a good is “normal”?
What is buying more when income increases
100
Price elasticity of demand is the measure of how much __________ changes relative to ______ change.
What is quantity; price
100
Price floors create a _______, while price ceilings create a ________.
What is surplus; shortage
200
Fill out the acronym for the determinants of supply: S____ T____ O____ R____ E____ S____
What is: Sellers Technology Other outputs Resources Expectations Subsidies
200
How do you find the market demand for a good?
What is sum the individual demand curves horizontally to obtain market curve
200
How can you tell when a good is “inferior”?
What is demand decreases when income increases.
200
If a good is inelastic an increase in price will cause an _______ in revenue.
What is increase
200
True or False, all markets have a fixed location.
What is false.
300
Movement along the supply curve is caused by a change in _________.
What is price
300
Fill out the acronym for determinants of demand T___ O___ E___ I____ S___ S___
What is: Tastes & Preferences Other related goods Expectations Income Size of market Special circumstances
300
How does demand shift in relation to substitutes?
What is an increase in price of one good decrease demand, and increase demand for the substitute.
300
If a good is elastic, an increase in price will cause a _____ in revenue.
What is decrease
300
On a supply and demand graph, ____ is always on the y axis, and _____ is always on the x axis.
What is price; quantity
400
A surplus exists when price is set _________ equilibrium. To reach equilibrium, suppliers have to _____ price.
What is above; lower
400
What is the main difference between movement and a shift in demand (or supply)?
What is a change at a particular price v. change at every price
400

How does demand shift in relation to compliments?

What is price and demand of one good decreases, demand for the compliment increases.

400
A good is elastic if its elasticity is _______ than 1.
What is greater
400
If producers expect the price of hot chocolate to increase next month, what will the supply curve do now?
What is shift left (decrease).
500
A shortage exists when price is set ______ equilibrium. To reach equilibrium, suppliers must _______ prices
What is below; raise
500
Markets are always trying to move towards
What is equilibrium
500
If the price for peanut butter increases, what will happen to the demand for jelly?
What is demand will decrease (compliment)
500
A perfectly inelastic demand curve is _______. A perfectly elastic demand curve is ________.
What is vertical; horizontal
500
The government sets the minimum price of coffee at $1 above equilibrium, what market condition exists?
What is a surplus (price floor).
M
e
n
u