EPF Unit 4 - The Price System

When the price of tennis rackets increases, what happens to the market for tennis balls?

If a surplus in a market occurs, the price will rise.

When price of a substitute good increases, demand for original good will decrease. Price & quantity will decrease.

A price ceiling is a legislated price that is

Price floors create

The relationship between price and quantity supplied is typically

The relationship between price and quantity demanded typically is ____________________.

With inelastic demand, consumers are relatively __________________ to changes in price.

When quantity supplied is equal to quantity demanded the market is in _______________.

If the price of oranges, a substitute for apples, increases, what will happen to the demand for apples?

Quantity demanded is less than quantity supplied. Therefore, prices will ________ causing quantity demanded to _______.

If the supply of cell phones increases what will happen to the price and quantity of cell phones?

If income decreases and consumers purchase more of a product, the product is considered to be a/an ____________________.

If consumers expect the price of a product to be higher in the future, what will happen to demand for the product today?

Economic demand is the amount of a good or service...

What is the relationship between quantity demanded and supplied at equilibrium?

A change in supply is illustrated by a movement along an existing supply curve.

An equilibrium price in a market is where quantity demanded exceeds quantity supplied.

When the price of hot dogs decreases, what happens in the market for the complementary good of hot dog buns.

With elastic demand, the percentage change in quantity is ______________________ the percentage change in price.