Supply and Demand Fall 24

Front

As prices rise, sellers will offer more goods and services for sale.

Back

Law of Supply

Front

A shortage of a good is often a signal for a producer to

Back

raise the prices of that good

Front

If the demand curve shifts to the right, does the supply curve move up and to the right?

Back

True

Front

An increase in price of jelly causes a decrease in demand of peanut butter. The products are

Back

complements

Front

An increase in the price of a product will reduce the amount of it purchased because:

Back

consumers will substitute other products for the one whose price has risen.

Front

Goods that are bought and used together are

Back

complementary goods

Front

Are these substitutes or complements?

Back

Complements (buy together)

Front

Are these substitutes or complements?

Back

Substitutes (buy instead of)

Front

If there is a huge demand for an item and the supply is very low, what will happen to the price?

Back

The price will increase

Front

What is the Equilibrium Price?

Back

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.