Economics Unit 4 Review

This is a graph depicting the relationship between the price of a certain commodity (the y-axis) and the quantity of that commodity (the x-axis) that is demanded in a given period.

• Demand Curve
• Supply Curve
• Price Elasticity
• Income Elasticity

This is a movement of the entire supply curve to the right or left.

• Shift in demand

• Movement along the supply curve
• Change in quantity supplied
• Change in supply

This term describes a good or service that is generally insensitive to changes in price.

• Inferior Good
• Substitute Good
• Complementary Good
• Inelastic Good

This is the amount of a good or service consumers are willing and able to buy at a given price.

• Quantity Supplied

• Quantity Demand

• Supply

• Demand

If changing the price for a good or service hardly impacts the quantity supplied or demanded, that good would be considered ___________ (blanks may not reflect the number of words in the blank).

• Elastic
• Inelastic
• Substitute
• Complementary

Provide an example of a good that has inelastic supply.

• Apple Orchard

• Water
• Land
• Gasoline

This is the amount of a good or service producers are willing and able to produce at a given price.

• Quantity Demanded

• Quantity Supplied

• Demand

• Supply

This is a graph depicting the relationship between the price of a certain commodity (the y-axis) and the quantity of that commodity (the x-axis) that is supplied in a given period.

• Supply Curve
• Demand Curve
• Equilibrium Price
• Price Elasticity

This term describes a product or service consumers see as the same or similar to another product.

• Income Effect

• Substitute

• Change in Preference

• Complement

Provide an example of a good that has inelastic demand.

• Luxury car
• Designer clothes
• Medicine

• Latest smartphone model