| A | B |
|---|
| When a consumer is able and willing to buy a good or service | Demand |
| What does it mean when the demand for a product is inelastic? | A price increase does not have a significant impact on buying habits. |
| What is a basic principle of the law of demand? | When a good’s price is lower, people will buy more of it. |
| A shift in the demand curve means | a change in demand at every price |
| What is a company’s total revenue? | the amount a company receives for selling its goods |
| What factor has the greatest influence on elasticity and inelasticity of supply? | time |
| Which of the following is a fixed cost for a store? | rent |
| an example of government influence on supply? | subsidies |
| The amount consumers have available to spend on goods and services | Purchasing Power |
| The tendency of consumers to replace a relatively more expensive product with a similar, lower-priced product is called | substitution effect |
| If consumers’ incomes rise, the demand curve will shift | to the right |
| In a free-enterprise system, the key factor affecting the quantity supplied is | profits |
| The relationship between a product’s price and the quantity supplied is | direct |
| If a good can be made quickly, inexpensively; and using a few, readily available resources, it has | elastic supply |
| The production costs that change as the level of output changes are called | variable costs |
| price goes up/down= demand goes down/up | Law of Demand |
| higher prices= more goods produced; lower prices… | Law of Supply |
| replacing one with another when price is affected | Substitute Goods |
| If the supply of a product is high and the demand is low, the price will be | low |
| 17) If a product is deemed a necessity and has no readily available substitutes , it will tend to have | inelastic demand |
