Supply and Demand Quiz

Latin phrase for “all other things held constant.”

• Adam Smith

• Demand Schedule

• Ceteris Paribus

• Voluntary Exchange

A table that lists how much of a product consumers will buy at all possible prices.

• Adam Smith

• Demand Schedule

• Ceteris Paribus

• Voluntary Exchange

A type of transaction where two parties freely trade goods or services.

• Adam Smith

• Demand Schedule

• Ceteris Paribus

• Voluntary Exchange

Known as the Founder of Modern Economics and the author of The Wealth of Nations.

• Adam Smith

• Demand Schedule

• Ceteris Paribus

• Voluntary Exchange

Goods that you would buy in smaller quantities, or not at all, if your income were to rise and you could afford something better.

• Inferior Good

• Invisible Hand

• Law of Demand

• Compliments

When a good’s price is lower, the quantity demanded, or the amount people are willing to buy, is greater.

• Inferior Good

• Invisible Hand

• Law of Demand

• Compliments

Two goods that are bought and used together.

• Inferior Good

• Invisible Hand

• Law of Demand

• Compliments

A metaphor for the unseen forces that move the free market economy.

• Inferior Good

• Invisible Hand

• Law of Demand

• Compliments

Goods that are used in place of one another.

• Law of Supply

• Elasticity

• Substitutes

• Equilibrium

A measurement of how drastically buyers will cut back or increase their demand for a good when the price rises or falls.

• Law of Supply

• Elasticity

• Substitutes

• Equilibrium