TF South Supply and Demand

A good consumers demand more of when incomes increase

Quantity demanded and supplied are equal.

Not a cost of production

Two goods that are bought and used together (cars and gasolin)

A _______ cost does not change due to how many goods are produced.

Two goods that are used in place of one another. (Pepsi/Coke)

Total receipts

Producers supply more at higher prices and supply less at

A minimum price for a good or service. (Minimum wage)

A maximum price that can be legally charged for a good service. (Rent control)

Quantity supplied is more than quantity demanded.

All businesses focus on reducing _________ cost.

Key factor when determining elasticity of supply

This is a variable cost

Price ceilings are placed on goods

A good consumers demand less of when their incomes increase

Payment to business by the government

When the quantity demanded is more than the quantity supplied

The law of diminishing returns states, a continual increase of capital resources leads to

A cost of production

If price increases from $10 to $11 and quantity demanded goes from 20 to 30.

A market in which goods are sold illegally

If the cost of production represents a large portion of the consumers income, the demand is

Revenue-Cost of production =

Inelastic demand occurs when

An increase in a goods price causes a _______in the quantity demanded.