Economics Unit II Supply and Demand

An established maximum price that sellers may charge for a good or service is a

Goods that consumers demand less of when their incomes rise. ie. Dollar Store goods.

The "magical" number also known as market clearing point.

A change in the amount of a product that people will buy because of a change in price is called

When a change in the marketplace makes buyers buy different amounts of a good at every price.

 Increase/decrease  amount of a good/service they are willing to sell bc of change in price

A price ceiling is set ____ the equilibrium price so a shortage will result. ie. NYC Apts

Refers to the willingness and ability of producers to offer goods and services for sale.

When the price of a good or service falls, consumers buy more of it.

When a change in price, either up or down, leads to a larger change in quantity demanded.

Curve that shows how much of a good or service a producer is willing and able to offer for sale

Something makes producers offer different amounts for sale at every price.

Minimum wage is an example of a...

When the use of one product increase the use of another product ie. Chips and Salsa

Goods and services that can be used in place of other goods and services to satisfy consumers

What is the desire to have some good or serivce AND the ability to pay for it.

As established minimym price that buyers must pay for a good/service

When the buying power of your income changes, even though the amount of income doesn't change.

A demand curve slopes...

Producers are willing to sell more of a good or service at a higher price than a lower price.

The area on a graph above the equalibrium price shows a 

The area on a graphy below the equilibrium price shows a