Unit 2 Review

Costs that can be changed at any time are

Additional satisfaction declines as additional units of an item are consumed is called

According to the law of demand, when prices decrease, demand

What are the characteristics of demand?

If the price of an item rises, quantity demanded usually

When the price of a good is too high, consumers look for

The quantity demanded of a product is affected by

If a person chooses to wait to buy a cell phone because a new version is coming out, this is

Which would an economist consider a likely substitute for coffee?

If the price of a product is above its equilibrium price, the result is a

According to the law of supply, when prices increase, the supply will

What are the two causes of market disequilibrium?

When the price of an item goes up, the quantity demanded

Which would an economist consider a likely complement for coffee?

According to the law of supply, when prices increases, supply

Costs that a business will incur no matter what in the short run are

According to the Law of Supply, which of these would happen to an item as its price rose?