| A | B |
|---|
| Communist govts use a command economic system to | create a society in which everyone was equal |
| elasticity of demand | determines how price changes will affect a company |
| if sellers expect prices to go up fast, | they store the goods until the price rises |
| when a consumer is willing and able to buy things | he creates demand |
| the price and quantity produced is determined by | the interaction of supply & demand |
| the U.S. economy is based on a | market economy |
| a shift in the demand curve means | a change in demand at every price |
| diminishing marginal returns occurs when | additional workers increase total output at a decreasing rate |
| the total cost of a factory is determined by | fixed cost plus variable cost |
| the equilibrium price is the price at which | quantity supplied equals quantity demanded |
| A shift in the demand curve means | a change in demand at every price |
| Inferior goods are goods that people don't buy | when their income goes up |
| ceteris paribus means that | nothing but the price of an item will change |
