| A | B |
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| A demand curve illustrates the quantity demanded at all possible? | prices at a given time |
| The Law of Demand states | that more of a product will be purchased at low prices than at high ones. |
| Productivity will decrease if workers? | are unmotivated |
| The market supply curve shows | the quantities offered at various prices by all firms that offer the product for sale in a given market. |
| An increase in the cost of inputs can cause | the supply curve to shift to the left. |
| For most products and services, increased price results in | demand for fewer products. |
| complements | An increase in the price of milk causes a decrease in the demand for cereal. |
| Advertising, fashion trends, and new product introductions serve to | create consumer demand |
| Because a modest price increase has little or no effect, the demand for the product is | elastic |
| substitution effect | Consumers' willingness to replace a costly item with a less costly item |
| When a customer's need for a product is not urgent, demand tends to be? | elastic |
| All of the following can change the market supply curve | the cost of labor., the expectation that prices are about to increase. and the numbers of sellers offering the product. |
| When producers offer fewer products for sale at each and every price | the supply curve has shifted to the left |
| In a market economy, a high price is a signal for | producers to supply more and consumers to buy less. |
| At a given price, a surplus occurs when | the quantity supplied is greater than the quantity demanded. |
| federal minimum wage law demonstrates | a societal choice for economic equity over efficiency. |
| If a competitive market is at equilibrium, and if there is a sudden increase in demand, then a temporary | shortage will occur and the price will increase. |
| When demand decreases, the demand curve shifts to the | left |
| When a consumer's need for a product is urgent and cannot be put off, demand for the product is usually | inelastic |
| Prices serve as signals to both | producers and consumers |
| A price ceiling is what? | THE maximum legal price that can be charged for a product |
| Governments interfere in the market economy to help achieve ? | social goals of equity and security |
| During times of emergency, the govenment may establish | rationing in order to ensure the fair distribution of certain products |
| The price, or monetary value of an item, is determined by | supply and demand |
| New technology will | lower the cost of production |
