Economics Unit 2 2019 Review

What is a price ceiling?

___________ is the monetary value of a product as established by supply and demand.

An increase in the price of milk causes a decrease in the demand for cereal. The products are

How does a price floor work?

A tax on the sale or manufacture of a good like alcohol

Which of the following is NOT an advantage of prices?

The supply of a product normally decreases if _____________

What does this graph show?

__________ is a system of allocating goods and services without prices

What states that an increase in a good's price causes a decrease in the quantity demanded?

Where supply and demand curves meet is known as:

What does this graph show?

The government says pineapples increase pneumonia. What happens to market price and quantity?

When people make less money than before, what happens to demand of a good or service?

The supply curve is always

What does this graph show?

If a producer sets their introductory price of their product too low, what normally happens?

Who determines demand?

What does this graph show?

What is price?

Who determines supply?

The government provides a subsidy to manufacturers. What happens to supply or demand?

These are costs that producers have no matter how much they sell

A small price increase has little or no effect, the demand of the product is

___ is when a small change in a good's price causes major opposite change in quantity demanded.

Occurs when there is a small supply of a product but large demand; the price will be high.

True or False: Medicine is often a product that is inelastic

For most products and services, an increase in price results in

What are the variable(s) in Law of Supply and Demand?

How does the demand curve show an increase in demand?

The price of batteries, a key resource in iphones, increases. What happens to supply and demand?