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WorksheetsMicroeconomics Introduction
Total questions: 16
Worksheet time: 8mins
The amount of a good that consumers are willing to buy at various prices.
Demand Curve
Basic Economic Principle
Supply Curve
Production Possibilities Frontier
Consumers will buy more of a good or service when its price is lower and less when its price is higher.
Law of Supply
Tariffs
Law of Demand
Market System
The amount of a good that producers are willing to make at various prices.
Law of Demand
Supply Curve
Demand Curve
Basic Economic Principle
The quantity of goods supplied will be greater at a higher price than it will be at a lower price.
Law of Demand
Consumers
Law of Supply
Law of Diminishing Marginal Utility
Consumers react to a rise in the price of one good by consuming less of that good and more of a substitute good.
Income Effect
Quantity Effect
Substitution Effect
Law of Supply
Consumers react to rising prices when income does not change by consuming less of a good.
Substitution Effect
Supply and Demand
Income Effect
Doppler Effect
A measure of how consumers react to a change in price.
Basic Economic Principle
Elasticity of Supply
Elasticity of Demand
Income Effect
Buying much less of a good
> 1 Elastic Demand
< 1 Inelastic Demand
Unitary
Buying the same, or just a little less of a good.
> 1 Elastic Demand
< 1 Inelastic Demand
Unitary
Amount purchased is unaffected by price.
> 1 Elastic Demand
< 1 Inelastic Demand
Unitary
Measures how firms/producers will respond to changes in the price of a good or service.
Elasticity of Supply
Law of Demand
Elasticity of Demand
Globalization
Supply is sensitive to changes in price.
> 1 Elastic Supply
< 1 Inelastic Supply
Unitary
Supply is not sensitive to changes in price.
> 1 Elastic Supply
< 1 Inelastic Supply
Unitary
Equal supply change to price change.
> 1 Elastic Supply
< 1 Inelastic Supply
Unitary
What does it mean when the demand for a product is inelastic?
There are very few satisfactory substitutes for the product.
People will not buy any of the product when the price goes up.
Customers are sensitive to the price of the product.
A price increase does not have a significant impact on buying habits.
The Law of Demand is...
Sometimes True
Always True
Sometimes False
Always False
