Supply and Demand

If a persons purchasing power increases they can buy more

• Elastic

• Supply Curve

• Diminishing Returns

• Income Effect

Increase in output that is less with each unit 

• Elastic

• Supply Curve

• Diminishing Returns

• Income Effect

Demand and supply are easily effected by price 

• Elastic

• Supply Curve

• Diminishing Returns

• Income Effect

Tells the quantity a producer is willing to make at each price

• Elastic

• Supply Curve

• Diminishing Returns

• Income Effect

Price of resources needed to produce a good or service

• Input Cost

• Labor productivity

• Subsidies

• Increasing Returns 

If the price falls people buy more

• Law of Demand

• Law of Supply

• Diminishing Marginal Utility

If the price raises producers make more

• Law of Demand

• Law of Supply

• Diminishing Marginal Utility

Benefit decreases with each unit produced 

• Law of Demand

• Law of Supply

• Diminishing Marginal Utility

What type of goods are usually bought together?

• Substitute

• Complimentary

• Inferior

• Luxury

What is the term for the cost of producing one more unit? 

• Fixed

• Input

• Output

• Marginal