Unit 2: Understanding Markets Test

Front

A factor other than price that affects demand:

Back

Determinant of demand

Front

A product used instead of another when prices rise:

Back

Substitute good

Front

When a small price change causes a big change in quantity demanded:

Back

Elastic demand

Front

Consumer payment to government to fund public services:

Back

Tax

Front

Government payment to businesses to encourage production:

Back

Subsidy

Front

Additional output from adding one more unit of input:

Back

Marginal product

Front

Costs that do not change with production level:

Back

Fixed costs

Front

According to the law of supply, when price increases, producers will:

Back

Supply more

Front

When quantity supplied is more than quantity demanded:

Back

Surplus

Front

When quantity demanded exceeds quantity supplied:

Back

Shortage