Economics unit 2

Front

Which product would be considered inelastic? You pizza can have a large increase in price and slight change in demand, Your pizza can have a large change in price with a high change in demand, You create the most delicious pizza ever, you can jack that price up, but alas, demand has plummeted as this is not Chic fil a., A massive change in demand results in a small change in price.

Back

You pizza can have a large increase in price and slight change in demand

Front

Let us assume you are a politician. Why would you argue in favor of a price ceiling?

Back

To protect consumers.

Front

When would you decide to raise the price of your product? Options: when demand rises, when supply in the area reaches a certain point, when you can find a cheap substitute, when the cost of your inputs goes down.

Back

when demand rises.

Front

When a price ceiling is put in place on gas, long lines happen because of what?

Back

there is a shortage because producers supply less.

Front

when a price ceiling is put in place, who benefits?

Back

consumers

Front

Under what circumstance is the price of a good likely to rise?

Back

when demand increases, gotta make that $$$$.

Front

Cereal and milk are considered what?

Back

complementary good (companion goods)

Front

when the government decides to set a price ceiling (price cap), what tends to happen?

Back

As a result of making less money, they produce less

Front

Why would you decide to choose a new product instead of your favorite one?

Back

The substitute is cheaper.

Front

In what way is productivity related to the price of goods?

Back

The more productive you are with resources, the more output, lower cost for consumers.