Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
supply demand commodities substitute complement demand curve demand choke price inverse demand curve change in quantity demanded change in demand production technology supply curve supply choke price inverse supply curve change in quantity supplied change in supply equilibrium price elasticity price elasticity of demand elastic inelastic unit elastic perfectly inelastic perfectly elastic income elasticity of demand inferior good normal good luxury good cross- own- | The relationship between the quantity supplied of a good and the good’s price, holding all other factors constant. A demand curve written in the form of price as a function of quantity demanded. A good that can be used in place of another good. The percentage change in quantity demanded for a good resulting from a percentage change in the price of that good. A shift of the entire demand curve caused by a change in a determinant of demand other than the good’s own price. The combined amount of a good that all producers in a market are willing to sell. The percentage change in quantity demanded associated with a 1% change in consumer income. The combined amount of a good that all consumers in a market are willing to buy. A good for which quantity demanded rises when income rises. The relationship between the quantity of a good that consumers demand and the good’s price, holding all other factors constant. The ratio of the percentage change in one value to the percentage change in another. A price elasticity with an absolute value less than 1. A movement along the demand curve that occurs as a result of a change in the good’s price. The price at which no consumer is willing to buy a good and quantity demanded is zero; the vertical intercept of the inverse demand curve. A price elasticity that is equal to zero; there is no change in quantity demanded or supplied for any change in price. A supply curve written in the form of price as a function of quantity supplied. A shift of the entire supply curve caused by a change in a determinant of supply other than the good’s own price. A price elasticity with an absolute value greater than 1. The processes used to make, distribute, and sell a good. A movement along the supply curve that occurs as a result of a change in the good’s price. A price elasticity with an absolute value equal to 1. The price at which no firm is willing to produce a good and quantity supplied is zero; the vertical intercept of the inverse supply curve. Products traded in markets in which consumers view different varieties of the good as essentially interchangeable. A good with an income elasticity greater than 1. A good for which quantity demanded decreases when income rises. A price elasticity that is infinite; any change in price leads to an infinite change in quantity demanded or supplied. The only price at which quantity supplied equals quantity demanded. A good that is purchased and used in combination with another good. The percentage change in the quantity demanded of one good associated with a 1% change in the price of another good. The percentage change in quantity demanded resulting from a given percentage change in price. |