Demand
The Law of Demand states that as the price of a good or service increases, the quantity demanded will ____.
Decrease
The Law of Supply states that as price increases, the quantity producers make _____________.
increases
The definition of elasticity states "The degree to which changes in a good’s price affects the ___________"
Quantity demanded
Definition for this vocab term: The main form of communication between producers and consumers
Price system
What is the acronym for the determinants of supply?
"The amount of a good or service that a consumer is willing and able to buy at various prices over a specific period of time."
Demand or Quantity Demanded?
Demand
The amount of a good or service that a producer is willing and able to sell at each particular price during a given period of time.
Supply or Quantity Supplied?
Quantity Supplied
If a small change in a good’s price causes a major opposite change in the quantity demanded, it is ____
Elastic
A surplus usually occurs when a product's price is at this level.
Too high
Which determinant of demand deals with an influx of new community members?
Population/demographics
Definition of this vocabulary term: Amount of money people have left to spend after purchasing necessities.
Expendable Income
This is the direction a supply curve shoots.
Outward
What is one characteristic that causes the demand for a good to be elastic?
1. The product is not a necessity.
2. There are readily available substitutes.
Definition for this vocab term: A government regulation that establishes a maximum price for a particular good.
Price ceiling
The supply determinant of government intervention includes these two types of gov. economic regulation.
Taxes and subsidies
There is a(n) _________ correlation/relationship between price and demand.
Inverse
There is a(n) ___________ correlation/relationship between price and quantity supplied.
Direct/positive
Name a product that has inelastic supply.
Any product that is made slowly and not easy to make.
Definition for this vocab term: A government regulation that establishes a minimum price for a product
Price floor
What is the percent change equation?
(New - old/old) x 100
Normal and Inferior Goods fall under this determinant category.
Income
Natural disasters would affect this supply determinant.
Resource price/availability
Name a product that has elastic supply.
Any product that is quick and easy to make.
A shortage occurs when...
Quantity demanded exceeds quantity supplied
What is the elasticity coefficient equation?
Percent change in quantity/percent change in price