Supply and Demand

Question 0

law of demand

Answer 0

when the prices lower, consumers will buy more

Question 1

Demand

Answer 1

desire to own something and the ability to pay for it

Question 2

substitution effect

Answer 2

as prices rise, alternatives are found

Question 3

demand curve

Answer 3

A graph that shows demand based on price

Question 4

four factors leading to a change in demand

Answer 4

income, consumer expectations, population, and advertising

Question 5

elasticity of demand

Answer 5

consumers react to a change in price

Question 6

inelastic demand

Answer 6

demand not very sensitive to a change in price

Question 7

elastic demand

Answer 7

demand that is very sensitive to a change in price

Question 8

equilibrium

Answer 8

when quantity demanded quantity supplied are equal

Question 9

disequilibrium

Answer 9

when quantity demanded is not the same as quantity supplied

Question 10

Price ceiling

Answer 10

maximum price that can be charged for a good

Question 11

Price floor

Answer 11

minimum price for a good

Question 12

surplus

Answer 12

quantity supplied is more than quantity demanded

Question 13

shortage

Answer 13

quantity supplied is less than quantity demanded

Question 14

supply

Answer 14

amount of goods available

Question 15

law of supply

Answer 15

higher the price, the more that is produced

Question 16

supply curve

Answer 16

a graph that shows supply based on price

Question 17

fixed costs

Answer 17

cost that doesn’t change no matter how much is produced

Question 18

variable costs

Answer 18

costs that rise or fall based on the quantity produced

Question 19

total cost

Answer 19

fixed and variable costs together

Question 20

marginal cost

Answer 20

The additional cost of producing one or more unit

Question 21

subsidy

Answer 21

Government payment that supports a business or market

Question 22

excise tax

Answer 22

text on a production or sale of a good