Demand Vocabulary
Define the term complement good.
Products that are used, consumed, or purchased together
Define the term supply
The amount of goods businesses/factories are willing to make/sell
Read the following information, then demand if the D2 curve would be drawn to the left or right on a graph?
Market Product: Cars
Gas prices plummet and stay low for years.
Right
Define the term substitute good.
A good that replaces another good with little difference to the consumer
Define the term shortage
When there are not enough goods to meet the demand
Read the following information, then demand if the D2 curve would be drawn to the left or right on a graph?
Market Product: Fallout 3
Gamers complain that there are issues downloading Fallout 3 from Steam.
Left
Define the term demand
The desire and ability of consumers to buy goods and services
Lumibrick and Legos are substitute goods.
True or False?
True
Read the following information, then demand if the S2 curve would be drawn to the left or right on a graph?
Market Product: Chocolate
The price of cacao beans plummets.
Right
If the price of an item increases, the demand decreases
If the price of an item decreases, the demand increases
What is the law of supply?
If the price of an item increases, the quantity increases
If the price of an item decreases, the quantity decreases
Read the following information, then demand if the S2 curve would be drawn to the left or right on a graph?
Market Product: Travel Luggage
Due to move efficient production, the price of luggage drops significantly.
Left
List the four determinants of demand
- Changes in consumers' income
- Changes in the preference for certain goods
- Changes in the price of a substitute good
- Changes in the price of a complement good
List the three market conditions of supply.
Changes in technology used to make goods
Changes in the price of resources to make goods
Changes in government policy
Read the following information, then answer the two questions:
Market Product: Christmas Toys
The government increases taxes on companies that make plastic Christmas items.
Would the supply or demand curve shift?
Would the new curve be drawn to the right or left on a graph?
Supply
Left