Supply and Demand!

Supply and Demand!

Question 1 - 10 • Demand is made up of these two things.

Answer 1 – 10 • What is DESIRE to own something and the ABILITY to pay for it?

Question 1 - 20 • The Law of Demand states that if prices go down, this will happen to demand.

Answer 1 – 20 • What is go up?

Question 1 - 30 • The Substitution Effect says that if the price of a normal good goes up, demand for a substitute good will do this.

Answer 1 – 30 • What is go up?

Question 1 - 40 • Elasticity of Demand measures this.

Answer 1 – 40 • What is how sharply customers will react to price changes.

Question 1 - 50 • When the demand for cell phones goes up, the demand for chargers also goes up because these two items are this.

Answer 1 – 50 • What are Complements? (Complementary Goods)

Question 2 - 10 • Supply is made up of these two things.

Answer 2 – 10 • What is the amount of a good a producer is WILLING AND ABLE to produce at a given price?

Question 2 - 20 • The Law of Supply states that as the price of a product falls, producers will do this.

Answer 2 – 20 • What is make LESS of the product?

Question 2 - 30 • Advancements in technology tend to have this effect on supply of certain goods.

Answer 2 – 30 • What is INCREASE SUPPLYat a given price?

Question 2 - 40 • This is the ultimate goal of a producer when deciding on whether or not to make more or less of a good.

Answer 2 – 40 • What is to MAXIMIZE PROFITS ?

Question 2 - 50 • When customers demand more than producers are able to supply, this is created.

Answer 2 – 50 • What is a SHORTAGE ?

Question 3 - 10 • If the DEMAND curve shifts to the right, it indicates that this has happened.

Answer 3 – 10 • What is DEMAND HAS GONE UP for some reason?

Question 3 - 20 • If the SUPPLY curve shifts to the right, it indicates that this has happened.

Answer 3 – 20 • What is SUPPLY HAS GONE UP for some reason?

Question 3 - 30 • If DEMAND drops, this is the direction the DEMAND curve moves.

Answer 3 – 30 • What is to the LEFT?

Question 3 - 40 • If SUPPLY drops, this is the direction the SUPPLY curve moves.

Answer 3 – 40 • What is to the LEFT?

Question 3 - 50 • If SUPPLY drops, this is the direction the DEMAND curve moves.

Answer 3 – 50 • What is IT DOESN’T MOVE AT ALL.

Question 4 - 10 • IT is what is measured on the VERTICAL AXIS.

Answer 4 – 10 • What is PRICE?

Question 4 - 20 • This is indicated by the HIGHLIGHTED line?

Answer 4 – 20 • What is DEMAND?

Question 4 - 30 • What is measured on the HORIZONTAL AXIS?

Answer 4 – 30 • What is QUANTITY?

Question 4 - 40 • The name of the point indicated here:

Answer 4 – 40 • What is EQUILIBRIUM?

Question 4 - 50 • It’s the value found at the bottom left side of curve.

Answer 4 – 50 • What is ZERO?

Question 5 - 10 • It’s the action shown below:

Answer 5 – 10 • What is DEMAND IS SHIFTING RIGHT (demand is increasing)?

Question 5 - 20 • It’s what happens to price when the following happens:

Answer 5 – 20 • What is PRICE RISES?

Question 5 - 30 • An economist makes this to predict how a large number of people will change their buying habits when prices increase or decrease. In hundreds of dollars  In thousands of  bushels

Answer 5 – 30 • What is a MARKET DEMAND SCHEDULE?

Question 5 - 40 • If a PRICE FLOOR (lowest possible price for a product) is imposed by an outside force, this is created:

Answer 5 – 40 • What is a SURPLUS?

Supply and Demand!