Whole Class
The Demand Curve is *blank* sloping and The Supply Curve is *blank* sloping
Downward and Upward
On the Demand or Supply Curve, a change in price alone does what?
A movement along the curves
Assume you like PB&J sandwiches. When the price of Peanut Butter goes up, the demand for jelly goes down. This is an example of what?
Complimentary Goods
Assuming you are wealthy, a luxury item would be considered a *blank* good
Normal Good
Assuming you are wealthy, ramen noodles would be considered a *blank* good
Inferior Good
What is the law of supply?
It's a direct relationship between price and quantity supplied
Supply will increase/shift to the right
If the number of buyers in a market decrease, what will happen with the demand curve?
Will decrease/shift to the left
When QD > QS means we have a what?
Shortage
A worker's salary is an example of what kind of cost?
Fixed
The quantity supplied increases
When a modest increase in price has little to NO EFFECT on the demand of this product is an example of being what?
Inelastic
Substitute
When QS > QD, then we have a what?
Surplus
Raw materials are an example of what kind of cost?
Variable
The additional costs of an additional unit of output is defined as what?
Marginal Cost
What is the goal of a business ultimately?
To Maximize Profits
This is where the government pays a business to produce something
A subsidy
Taxes in economics, typically does what to supply?
Decrease
This kind of market structure is where firms are the "price makers" where they set the market price offerings.
Monopoly
In what market are firms "price takers", meaning they have no control over the prices accepted by the going market price?
Perfect competition
legal maximum on the price that can be charged for a product or service, typically set by the government to make essential goods affordable and prevent unfair prices.
Price Ceiling
Assume you are a farmer. You learn that the cost of fertilizer that you use to grow crops has gone up. What will happen between price, qty, and the supply/demand curve?
Supply will decrease, causing price to go up and quantity to decrease.
This is where the government tells a business the maximum $ amount that they can charge consumers in a market.
Price Floor
when a small change in a good's price causes a large change in the quantity consumers want to buy, often for luxury or non-essential items with many substitutes
Elastic Demand