| A | B |
|---|
| Karl Marx | Communism |
| Adam Smith | Market Economy |
| United States | Mixed Market Economy |
| Law of Demand | Quantity demanded increases as price decreases |
| Law of Supply | Quantity supplied by the seller increases as price increases |
| Elasticity | responsiveness of demand to changes in price |
| When buyer demand is elastic . . . | buyer demand changes significantly with changes in the price of the product or service |
| Demand | A consumer's willingness and ability to buy |
| Market Economy | Self-interest and private ownership benefit all of society |
| Total Revenue | price x quantity |
| Elastic Demand | inexpensive product taking small percentage of buyer's monthly income |
| Inelastic Demand | No substitutes, must have now |
| Equilibrium Point | Quantity demanded equals quantity supplied |
| Equilibrium Price | Marketing Clearing Price |
| Shortages | Exist below the market clearing price |
| Surpluses | Exist above the market clearing price |
| Profit | The reason why more quantity is supplied to the market as the price increases |
| Diabetic's demand for insulin | inelastic |
| Increase in buying power | Receive income tax refund |
| Complementary Goods | CD player and CDs |
