Economics - Unit 2

a place where economic products are bought and sold

• good

• service

• market

• demand

small change in a good's price causes a major, opposite change in the quantity demanded

• elastic

• inelastic

a change in good's prices has little impact on the quantity demanded

• elastic

• inelastic

small changes in price causes HUGE changes in the amount demanded

• elastic demand

• inelastic demand

• supply

a change in price has little to no impact on the amount demanded

• elastic demand

• inelastic demand

an increase in good's price causes a decrease in the quantity demanded AND a decrease in price causes an increase in the quantity demanded

• elastic demand

• inelastic demand

• law of demand

• law of supply

Which of the following is not an economic concept to help explain the law of demand

• income effect

• replacement effect

• substitution effect

• diminishing marginal value

Information about demand that is plotted on a graph is called

• demand schedule

• demand curve

Both butter and margarine are for sale. Butter's prices rise and people switch to margarine. This is an example of

• income effect

• replacement effect

• substitution effect

• demand effect

This factor of production includes machinery, technology, factories, ect.

• land

• labor

• capital

• limited liability