Shift in Supply
What is one factor that can cause supply to decrease because it becomes more expensive to make a product?
Higher input cost.
What happens to the demand for normal goods when people have more money to spend?
income rises.
What type of demand means people buy much less when the prices goes up?
Elastic demand.
What do economists call the amount of a product producers are willing to sell?
Supply.
A decrease in supply.
What improvement often increases supply by helping producers make goods faster and cheaper?
New technology.
What is it called when people start liking a product more and want to buy it more often?
A change in consumer preferences.
What type of demand means buyers keep purchasing about the same amount even when prices changes?
What do economists call the amount of a product consumers are willing to buy?
Demand.
A jacket becomes popular on TikTok, and more people want it. What market idea does this show?
An increase in demand.
What happens in the market when more sellers begin marketing the same product?
The number of producers increases.
What change can increase demand because there are more buyers in the market?
An increase in population.
What type of product usually has elastic demand because there are many other choices?
A product with many substitutes.
What is the term for a product that can be used in place of another product?
A substitute.
A Store raises the candy prices, and buyers quickly stop buying it. What type of demand does this show?
Elastic demand.
What kind of event can suddenly lower supply by destroying factories, farms, or transportation?
A natural disaster.
If Pepsi gets more expensive and people buy more Coke instead, what kind of goods are Pepsi and Coke?
Substitute goods.
What kind of product usually has inelastic demand because people need it no matter the price?
A necessity.
What is the term for two goods that are often used together?
Complements.
People keep buying gas even when prices go up a lot. What type of demand does this show?
Inelastic demand.
What kind of government help can increase supply by lowering production costs for businesses?
A subsidy.
If the prices of hot dog buns goes up and fewer people buy hot dogs, what are buns and hot dogs called?
Complementary goods.
What is a common real-life example of a good with inelastic demand?
Gasoline.
What is the point called where supply and demand meet?
Equilibrium.
A company invents a faster machine that lowers production cost. What factor is affecting the market?
Technology.