Demand
What is the table that shows the quantity of a good that consumers are willing to buy at different prices?
Demand Schedule
What is the graphical representation of the relationship between the price of a good and the quantity supplied?
Supply curve
What is the term for when businesses significantly raise prices during emergencies or disasters, often leading to government intervention or regulation?
Price gouging
What branch of economics studies individual and business decision-making?
Microeconomics.
What determinant of demand refers to the change in demand due to trends?
Consumer tastes/preferences
What effect describes the change in consumption patterns when consumers switch to a cheaper alternative as prices rise?
The substitution effect
What occurs when there is more of a product than consumers are willing to buy at the current price?
Surplus
What is the legal maximum price a seller can charge for a product or service?
Price Ceiling
What is a market structure called where a single seller dominates the market with no close substitutes?
Monopoly
A new law requiring businesses to install costly pollution control equipment. What determinant is affecting supply?
Government regulation
What economic principle states that, all else being equal, as the price of a good increases, the quantity demanded decreases?
Law of Demand
What are the factors that influence the amount of a good or service that producers are willing to sell?
Determinants of supply.
What is the term for the legal minimum price below which a product cannot be sold?
Price floor
What term refers to the point where the demand and supply curves intersect?
Equilibrium
The price of a smartphone increases, and people start buying more of a different, cheaper brand. What determinant is at play here?
Price of related goods (substitutes)
What happens to the utility a consumer derives from a good as they consume additional units of it?
Declining Marginal Utility
What external factors can cause a shift in the supply curve?
What happens when the quantity demanded is greater than the quantity supplied at the current price?
Shortage
What term refers to the additional satisfaction a consumer gains from consuming one more unit of a good?
Marginal utility
Producers believe the price of their product will rise significantly in the next few months, so they cut back production now. What determinant is influencing this behavior?
Expectations of future prices
What type of elasticity do airline tickets typically have?
They typically have elastic demand.
hat is the responsiveness of the quantity supplied of a good to a change in its price called?
Supply elasticity
What happens to prices when there is a shortage in the market?
Prices rise because the quantity demanded exceeds the quantity supplied
What happens to the supply of a product when new technology reduces production costs?
Supply increases
What happens to demand when consumers expect prices to rise in the future?
Demand increases now