Intro to Econ Unit II

An economy with economic freedom and some government involvement

Goods with elastic demand

An increase in supply (shift to the right) will cause prices to

A change in quantity supplied is demonstrated by

An economy based on ritual and custom

When the government sets a price at lower than equilibrium

An increase in taxes on businesses will

An increase in supply (shift to the right) will cause quantity to

If the cost of producing the good falls,

Government subsidies of production will

How much a business pays to make a product

When quantity supplied is equal to quantity demanded, the market has reached

In a competitive market, prices usually rise or fall to

The difference between the price a consumer pays and the cost of the business making the product

As prices rise, quantity supplied

Because price floors are set above equilibrium prices, they usually create

If the price of turkey sandwiches increases, demand for ham sandwiches will

An system in which consumers and businesses make economic decisions

A drive that people have to improve their material well-being

Surpluses usually cause market prices to

If consumers expect the price of a good to decrease next summer, then (right now)

If price of peanut butter increases, what happens to the grape jelly market (complements)?

An economy in which a central authority makes all the important economic decisions

An increase in demand (shift to the right) will cause prices to

On a graph, an increase in supply is shown by

New government regulations on businesses will

If the price of a taco falls from $5 to $3,

A change in the cost of producing the product affects

As prices decrease, businesses will offer less merchandise for sale

If the price of a hamburger rises from $5 to $10, then

If a good becomes more popular with consumers,

Historically, countries like North Korea and the Soviet Union have tried to be

On a graph, an increase in demand is shown by a

A decrease in demand (shift to the left) will cause quantity to

If it costs a business more to produce a good, they will produce

At higher prices, the amount people will buy decreases

Historically, the US and Western Europe have tried to be

Shortages usually causes market prices to

A good like insulin, where high prices only have a small impact on quantity demanded

A change in price affects

As income increases, demand for normal goods

As prices rise, quantity demanded

Quantity demanded is greater than quantity supplied

If the price of a good increases and quantity demanded decreases by a large amount, then that good is