The Basics
Shifting Sands
Economic Functions
Stretch-ing the Truth
Blast from the Past
100
This is the desire to own something, combined with the ability to pay for it.
What is demand?
100
This term describes a consumer's decision to buy a less expensive cereal for breakfast instead of bagels that have recently increased in price.
What is the substitution effect?
100
This is the only event that will cause movement along the demand curve for a specific product.
What is a change in price?
100
This is the measure of how much consumers respond to the change in price of a specific good.
What is elasticity of demand?
100
This is created whenever a buyer and a seller voluntarily come together to exchange things.
What is a market?
200
According to the law of demand, when the price of pizza goes up - and no other market conditions change - this will be the result.
What is "less pizza will be purchased"?
200
Rising consumer income will usually have this effect on demand for normal goods.
What is an increase?
200
A hardware store owner who is trying to determine how many tools are sold to all consumers in the market at various prices would create one of these.
What is a demand schedule?
200
This term is used to describe a situation in which quantity demanded falls rapidly due to a small price increase.
What is elastic demand?
200
These are the four factors of production.
300
This is the entire amount of money a company receives from selling its goods and/or services.
What is total revenue?
300
An increase in price for one good will have this effect on the demand for a complementary good.
What is a decrease?
300
This variable is shown on the horizontal axis of a demand curve graph.
What is quantity demanded?
300
If demand for a product is highly elastic, this will likely happen to a company's total revenue if it raises the price of that product.
What is "total revenue will fall"?
300
Many companies selling similar but not identical products are typical of this market structure.
What is monopolistic competition?
400
This Latin phrase means “all other things held constant.”
What is ceteris paribus?
400
Falling consumer income usually results in greater demand for these types of goods.
What are inferior goods?
400
These are economic factors that shift the position of a demand curve rather than causing movement along the existing curve.
What are non-price determinants?
400
A consumer's decision to continue buying the same quantity of a necessary medicine even when its price rises sharply demonstrates this type of demand.
What is inelastic demand?
400
This economic system is intended to balance the protection of both individual and social rights.
What is a mixed economy?
500
A firm's decision to raise prices on its goods will have this effect on its total revenue.
500
A consumer who responds to a sharp increase in his transportation costs by buying fewer clothes is demonstrating this economic principle.
What is the income effect?
500
A successful advertising campaign for an electronic game is likely to have this effect on the demand curve for the game.
What is a shift to the right?
500
The demand curve in the graph shows this type of demand.
What is unitary elastic demand?
500
The interaction between buyers and sellers in a market determines these two things.
What is price and quantity produced?