Unit 2 Supply and Demand Vocabulary quiz

This is the graph that shows the relationship between the price of a good and the amount of it that buyers are

willing to purchase at that price.

• Demand

• Demand Curve

• Law Of Demand

• Surplus

the part of the economy where labor and resources are sold

• Factor market

• Product Market

• Business market

• Household Market

This is the rule stating that more of a product will be consumed at a lower price and less will be consumed at a

higher price.

• Law of Supply

• Supply

• Law of Demand

• Demand

the rule which states that more of a product will be produced when the price is high and less will be produced when the price is low

• Law of Supply

• Supply

• Law of Demand

• Demand

This is the lowest legal price that can be charged for a product.

• Shortage

• Surplus

• Price Ceiling

• Price Floor

This is the name for the situation which exists when the quantity demanded is greater than the quantity supplied.

• Shortage

• Surplus

• Price Ceiling

• Price Floor

the situation that exists when the quantity supplied of an item is greater than the quantity demanded

• Shortage

• Surplus

• Price Ceiling

• Price Floor

This is where goods and services are sold in the circular flow model of income in economic theory.

• Factor Market

• Households

• Product Market

• Labor Market

Determined by the intersection of the supply and demand curves on a graph

• Price

• Equilibrium Price

• Quantity

• Demand

This is the two sector economic model showing how firms, or businesses, and consumers, or households,

interact.

• Supply and Demand Graph

• Circular Flow Chart

• PPF Curve

• Business Cycle