Words You Need to Know
"What is the term for the amount of a good or service that consumers are willing and able to purchase at a given price?"
"What is Demand?"
"What happens to the demand for smartphones if the number of smartphone users increases?"
"What is Increase in Demand?"
"What term describes how much the quantity demanded of a good changes in response to a change in price?"
"What is Price Elasticity of Demand?"
"What is the term for the additional benefit received by producers by receiving a higher price than what they are willing to accept?"
"What is Producer Surplus?"
"What is the term for the financial charge imposed by a government on a product, income, or activity?"
"What is Tax?"
"What do we call the additional benefit received by consumers by paying less than what they are willing to pay for a good or service?"
"What is Consumer Surplus?"
"How does a decrease in consumer income affect the demand for luxury goods?"
"What is Decrease in Demand?"
"What do we call a situation where a small change in price leads to a large change in quantity demanded or supplied?"
"What is Elastic?"
Unit or Relative Elastic is acceptable
"What do we call the maximum legal price that can be charged for a good?"
"What is Price Ceiling?"
"If a tax is imposed on a good, what do we call the the burden of the tax between buyers and sellers?"
"What is Tax Incidence?"
"What is the term for the minimum legal price that can be paid for a good or service?"
"What is Price Floor?"
"What do we call a situation where the quantity demanded is greater than the quantity supplied?"
What is Shortage?"
"What term is used when the percentage change in quantity demanded is less than the percentage change in price?"
What is Inelastic?"
"If the market price is set above the equilibrium price by the government, what is this called?"
"What is Price Floor?"
"How do you calculate the tax revenue generated from an excise tax?"
"What is Tax Rate multiplied by Quantity Sold?"
"What do we call the loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved?"
"What is Deadweight Loss?"
"What do we call the point where the quantity demanded and quantity supplied are equal?"
"What is Equilibrium?"
"If the quantity supplied of a product changes greatly with a small change in price, what is this condition called?"
"What is Elastic Supply?"
"What is the term for the triangle area formed by the demand curve, supply curve due to inefficiency in the market for a good?"
"What is Deadweight Loss?"
"If a product's demand is inelastic, who bears the majority of the tax burden?"
"What is the Consumer?"
"What is the term for a tax on a specific type of good, such as gasoline or alcohol?"
"What is Excise Tax?"
"If the market price is $5, quantity demanded is 300 units, and quantity supplied is 500 units, how many units is the surplus?"
"What is 200 units?"
"If the price of a product changes from $10 to $12 and the quantity demanded changes from 100 to 80 units, calculate the price elasticity of demand."
"What is -1 (Unit Elastic)?"
"What is the term that refers to the difference between the maximum price a consumer is willing to pay and the market price?"
"What is Consumer Surplus?"
"How is the total revenue of a company affected by a tax imposed on its product?"
"What is Decreased Revenue due to Lower Quantity Sold?"