Unit 2: Supply and Demand

Match each economic term with its definition: The quantity of a good or service that consumers are both willing and able to buy at various prices.

• Equilibrium Price
• Price Floor
• Demand
• Elasticity
• Surplus

Match each economic term with its definition: The degree to which a quantity demand or supplied changes based on a change in price

• Equilibrium Price
• Price Floor
• Demand
• Elasticity
• Surplus

Match each economic term with its definition: The price at which the quantity of a product demanded by consumers equals the quantity supplied by produces

• Equilibrium Price
• Price Floor
• Demand
• Elasticity
• Surplus

Match each economic term with its definition: A minimum price set by the government to prevent prices from going too low

• Equilibrium Price
• Price Floor
• Demand
• Elasticity
• Surplus

Match each economic term with its definition: When the quantity supplied at a specific price exceeds the quantity demanded

• Equilibrium Price
• Price Floor
• Demand
• Elasticity
• Surplus

Which of the following is NOT a demand shifter?

• Buyers (Number of)
• Related products
• Natural disasters
• Desires of consumers

What does elasticity measure?

• the change in production of a product
• the change in price of a product
• consumer reactions to a change in production
• consumer reaction to price changes

If a demand elasticity was calculated to equal 1, how would the elasticity be defined?

• Unitary elastic
• Elastic
• Inelastic
• Undetermined

When the price of a product is loo low, what is the result?

• Consumers lose interest in the product
• A shortage occurs
• A surplus occurs
• The product's market is at perfect competition

When the government sets a maximum price on a good or service, this is called a:

• Price floor
• Price Ceiling
• Equilibrium Price
• Externality Price