Demand
This law states that as price increases, quantity demanded decreases.
What is the Law of Demand?
When prices increase, supply does this.
What is increase?
This is the point where quantity supplied equals quantity demanded.
What is equilibrium?
This is a government-imposed maximum price.
What is a price ceiling?
This latin phrase means "all other things held constant."
What is ceteris paribus?
Demand curves typically slope in this direction.
What is downward?
Supply curves usually slope in this direction.
What is upward?
One of these occurs when demand for a good or service is higher than supply.
What is a shortage?
When a price cannot legally drop below an amount determined by the government.
What is a price floor?
What we call the factors that interrupt ceteris paribus and create changes in supply or demand.
What are shifters?
When quantity demanded is sensitive to changes in price, we call it this.
What is Elastic Demand?
When production costs decrease, the supply curve shifts in this direction.
What is to the right?
When the market price of quantity supplied is not at equilibrium, it is in this.
What is disequilibrium?
This example of a price ceiling is placed on landlords by the government to keep housing affordability stable.
What is demand?
This is what we call a good or service that can replace another when prices change.
The government can attempt to reduce the supply of a good or service by imposing these on producers.
What are taxes?
If price is above equilibrium, this market condition occurs.
What is a surplus?
Minimum wage is an example of this government-imposed price control.
What is a price floor?
A decrease in the number of sellers would cause supply to shift in this direction.
What is to the left?
Top Ramen, used cars, and secondhand clothing are all examples of these.
What are Inferior Goods?
These occur when marginal production levels decrease with new investment
What are diminishing marginal returns?
When there is a surplus, prices will generally move in this direction to reach equilibrium.
What is downward?
A price ceiling set below equilibrium will result in this market outcome.
What is a shortage?
On a supply and demand graph, this is what is measured on the X-axis.
What is quantity (demanded/supplied) ?