Demand & Supply Ch 4-5

What is an example of inelastic demand?

• A new car

• Insulin

• Gasoline

• Bananas

Amount of goods and/or services a consumer is willing & able to buy at various prices during a given time period is called...

• Supply

• Scarcity

• Elasticity of Demand

• Demand

A measure of how suppliers will respond to a change in price is...

• Price elasticity

• The 'rubber band' effect

• Elasticity of supply

• Elasticity of demand

A government payment to support a business or market

• Tariff

• Subsidy

• Laissez faire

• Substitutes

The tendency of suppliers to offer more of a good at a higher price

• law of supply

• law of shortage

• law of scarcity

• law of demand

The law of demand states...

• Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded.

• A decrease in the price of a good shifts the demand curve leftward.

• Other things remaining consistent, the higher the price of a good, the smaller is the quantity demanded.

• An increase in the price of a good shifts the demand curve leftward.

Which of the following does NOT shift the supply curve?

• A decrease in the wages of labor used in the production of the good

• An increase in the price of the good

• A technological advance

• A fall in the price of a substitute in production

You would refer to a(n) ______ to find the quantity that a person would purchase at each price that could be offered in a market.

• demand curve

• curve ball

• dangerous curve

• elastic curve

For a(n) _____, consumer's demand will increase as their income increases.

• normal good

• demand good

• supply good

• elasticity

This occurs when an increase in price decreases a buyer's real income.

• Inelasticity

• Elasticity

• Income effect

• Law of demand