Econ: Ch 3 & 4 (Supply & Demand)

Should we do a Google Forms quiz for these chapters?

Marginal cost is

price effect to price elasticity is...

Usually rises as the rate of production increases

Producers want to sell more at higher prices than at lower prices

Shown graphically by a shift to the right or the left of the supply curve

Slopes downward and to the right

Amount of g&s a producer is willing & able to make at different possible prices

A good or service that goes with another good or service, like peanut butter and jelly.

Name 2 things that cause the supply curve to shift to the right

When the price effect is small

Price X Quantity sold

Look at the image. Which shows price effect?

Supply tends to be more elastic when...

Amount of g&s that consumers are willing & able to buy at different prices at a particular time

Tea instead of coffee

Measures the impact of the price effect

Consumers want to buy more at lower prices

Look at the image. Which graph shows a change in demand?

The point reached when the next item consumed is less satisfying than the one before

When you can buy more at lower prices because you’ll use smaller %age of your income for it

When the price effect is large

Measures the impact of the price effect on supply

The sum of all individuals’ demands in a market

When the demand curve shifts to the right or left, resulting in a new demand curve.