Demand & Demand Shifters
Supply & Supply Shifters
Equilibrium & Market Controls
Elasticity & Calculations
Surpluses
100
According to the Law of Demand, what happens to the quantity demanded of a product when its price increases?
What is it decreases?
100
According to the Law of Supply, what is the direction of the relationship between price and quantity supplied?
What is a direct (or positive) relationship?
100
Market equilibrium occurs at the point on a graph where these two values are equal.
What is when Quantity Demanded equals Quantity Supplied?
100
If a good is a necessity (like insulin or essential medication), has few substitutes, and demand barely changes when the price rises, its demand is described as this.
What is Inelastic?
100
This is defined as the difference between a consumer’s willingness to pay for a product and the actual price they paid.
What is Consumer Surplus?
200
This demand shifter explains why sales of green tea spike after a new study shows it improves heart health, or why sales of a skincare brand jump after a viral TikTok review.
What is Tastes and Preferences?
200
If the price of wood or steel drastically increases, what shift occurs in the market for products made from those materials?
What is a decrease in supply (shift left) due to higher Cost of Production?
200
When the market price is set above the equilibrium price, resulting in Qs > Qd, this market condition is created.
What is a Surplus?
200
What is the standard formula used to calculate the Price Elasticity of Demand?
200
This term describes the extra benefit a producer receives when selling a good for a price higher than the minimum price they were willing to accept.
What is Producer Surplus?
300
If consumers expect the price of iPhones or gaming consoles to double next month, what happens to the demand for those products today?
What is Demand increases (shifts right)?
300
When the government provides financial aid to producers to lower their costs and increase production, it is known as this.
What is a Subsidy?
300
Rent control and gasoline price caps set below market equilibrium are legal maximum prices known as this.
What is a Price Ceiling? (Price ceilings below equilibrium result in shortages).
300
If the price of gasoline rises by 5% and the quantity purchased falls by 1%, what is the price elasticity coefficient, and is it elastic or inelastic?
What is 0.2 and Inelastic?
300
Graphically, Consumer Surplus is represented by the triangular area in this location relative to the equilibrium price.
What is above the equilibrium price and below the demand curve? 
400
If the price of coffee creamer drops, causing consumers to buy more coffee creamer and more coffee, how are coffee and creamer classified?
What are Complementary Goods?
400
If 10 new food trucks enter a festival or multiple new firms open in an industry, what happens to the supply curve for that market?
What is an increase in supply (shifts right) due to the Number of Producers?
400
Minimum wage laws and agricultural support prices set above equilibrium are examples of this government price control.
What is a Price Floor? (Price floors above equilibrium result in surpluses).
400
If the price of toothpaste increases by 30% and quantity demanded decreases by 15%, what is the elasticity coefficient?
What is 0.5 (Inelastic)?
400
What is the formula to calculate Total Surplus (TS) in a market?
What is Consumer Surplus + Producer Surplus (CS + PS)?
500
When consumer income rises during an economic boom, demand for canned soup and store-brand cereal drops. What type of goods are these?
What are Inferior Goods?
500
Farmers notice the market price of corn has risen drastically, so they decide to plant more corn and fewer soybeans. What supply shifter does this scenario illustrate?
What are Related-Goods-in-Production (Substitutes in Production)?
500
According to the Double Shift Rule, when both the demand curve and the supply curve shift simultaneously, what happens to either price or quantity?
What is it becomes Indeterminate (or Ambiguous)?
500
If price increases from $5 to $6 and quantity demanded drops from 15 to 10, is the good elastic or inelastic?
What is Elastic?
500
Calculate total surplus for the following 
5,000