Suppy & Demand & Elasticity

Front

Being able and willing to buy something creates:

Back

demand.

Front

The price and quantity of goods is determined by the interaction of:

Back

supply & demand.

Front

When economists use ceteris paribus, they are looking for what happens to supply and demand when only the ____________ changes.

Back

price

Front

If demand is inelastic, a small change in price has ________________ on how much people will buy it.

Back

very little affect

Front

The law of demand states that if prices for something are lower, then people will buy:

Back

more of it.

Front

If consumers expect the current price of a good to fall, then their demand for that good will:

Back

also fall.

Front

Using a celebrity to increase people's demand for a product will shift a demand curve:

Back

to the right

Front

Bingo Night tickets in a small town go from $5 to $8. Which effect will this change in price have?

Back

The quantity demanded will decrease.

Front

Which of the following would permanently shift someone's demand curve for ice cream to the right?
Options:
The price drops $1 a gallon.
WalMart runs a sale for 35% off the retail price.
A person moves from Phoenix, Arizona to Calgary, Canada.
Ground-breaking research finds that regular ice-cream consumption will increase your lifespan.

Back

Ground-breaking research finds that regular ice-cream consumption will increase your lifespan.

Front

At $3 per gallon, the quantity demanded will be:

Back

70 million gallons of gas.