Investment Club Economics BASICS

Total receipts

Producers supply more at higher prices and supply less at

Quantity supplied is more than quantity demanded.

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

A good consumers demand more of when incomes increase

All businesses focus on reducing _________ cost.

Quantity demanded and supplied are equal.

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

A market in which goods are sold illegally

A good consumers demand less of when their incomes increase

Controlled and planned markets are best represented here:

A cost of production

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

Revenue-Cost of production =

When the quantity demanded is more than the quantity supplied

From each according to his ability...to each according to their need

Belief of having FREE markets is best represented here:

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

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

Inelastic demand occurs when

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

Not a cost of production

Key factor when determining elasticity of supply

Price ceilings are placed on goods

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

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

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

Payment to business by the government

This is a variable cost