Supply and Demand
If the price of a product goes up, the quantity demanded for that product will ______________.
decrease/go down
When the government places a limit on how much businesses can charge for a product, this is a _______
price ceiling
Demand for a life-saving medication is likely to be _________.
inelastic
property taxes
Where quantity supplied equals quantity demanded
equilibrium
A bad harvest is likely to reduce the ______ of blueberries.
supply
rent control
If demand changes significantly in response to a price change, demand is considered to be __________.
elastic
Name given to taxes on goods like alcohol, cigarettes, or unhealthy foods, which are meant to discourage consumption of those goods
sin taxes
The term for businesses increasing prices during a crisis, for example overcharging for hotels when a hurricane destroyed people's homes
price gouging
If the price of graphite goes up, the _________ of/for pencils will go down.
supply
Economists would argue that price ceilings on bread would lead to a ___________ of bread
shortage
Because they are addictive
Explain why sales tax is considered a regressive tax
If the price of blueberries goes up, demand for blackberries will go up. Economists would say this is because blackberries are a _____________ for blueberries.
substitute
What is a real-world example of a price floor?
minimum wage
In an imaginary scenario where price increases have NO impact on demand for a good, demand for that good would be considered _____________
perfectly inelastic/perfect inelasticity
Give an example of a proportional tax
https://docs.google.com/document/d/1PgRWC-68_NCDgbmWIGmCOP3j3XRzV4XbLF5jlX4mg4Y/edit?usp=sharing
This is a supply and demand graph for sneakers. Come up with a scenario that would lead to the shift depicted in the graph.
Possible answers:
-a social media campaign or successful PR campaign
-increase in price of substitutes such as other types of shoes
-increase in consumers' income, as a result of a strenthening economy
https://docs.google.com/document/d/1yQsHIkaw7lX0-4T-efHEUwmDmNFSCWC2qGkedtQhJiA/edit?usp=sharing
How would this price ceiling (the red line) impact the market?
It would have no effect on the market because the price ceiling is set above the equilibrium price
https://docs.google.com/document/d/1SLfH7oljvZ3P6dxCw1r9oHCVLoYT9hOmddIeJY0JdfM/edit?usp=sharing
Compared to the graph on the left, the graph on the right shows demand for a good that is more ______________.
elastic
What is an argument against sin taxes that Ms. Wheatcroft shared in class?
They are regressive - that is they hit poorer people the hardest