1. Sides Game

2. Increase in the Price of Corn
Effect on demand for corn?
NONE

3. Decrease in P and Q
What single shift has occurred?
Decrease in Demand

4. One reason the demand curve slopes downward is that as one product gets more expensive, similar products become relatively cheaper.
This is called the substitute effect

5. Point to the Equilibrium Price

6. A price increase of a product will cause a decrease of _________ for that product
Quantity Demanded

7. price floors cause?
Surpluses

8. Example of substitutes of consumption
Butter/margarine

9. Example of complements of consumption
Pb and j

10. Example of complements of production
Beef and leather
Donuts and donut holes

11. Which is perfectly inelastic?

12. Example of substitutes of production
Cakes or cupcakes

13. Law of Demand states
Consumers will buy more at a lower price and less at a higher price

14. Law of Supply states
Producers are willing and able sell less at a lower price and more at a higher price

15. A good with inelastic demand
Gas (any necessity)

16. A good with elastic demand
Lemon scented garbage bags

17. Government paying producers a portion of production costs is called
subsidy

18. Point to the floor

19. Minimum wage is a price floor

20. If both supply and demand increase, what do we know for sure
If both supply and demand increase, what do we know for sure? Q will increase

21. Illegal sales resulting from price controls occur in what type of markets? Black Markets

22. An increase in the price of rubber will cause what shift in the tire market? Decrease supply

23. An increase in the price of rubber will cause what changes to price and quantity in the tire market? P increase and Q decrease

24. Movement along a demand curve represents a change in quantity demanded.

25. Point to the ceiling

26. Shifting a demand curve represents a change in demand

27. Which is perfectly elastic?

28. The point where the quantity supplied is equal to the quantity demanded. equilibrium