a line on a graph that illustrates a downward slope because of the inverse relationship between price and quantity

states that, holding all nonprice factors constant, as a product’s price increases, the quantity of the product decreases, and as a product’s price decreases, the quantity increases

states that, holding nonprice factors constant, the quantity of a good or service that a supplier is willing to offer on the market relates directly to price.

a place or situation in which the buyers and sellers of a product interact for the purpose of exchange

The price and quantity where demand equals supply; price and quantity toward which a free market automatically moves.

represented by a movement along a demand or supply curve from one price-quantity point to another.

when the quantity demanded is greater than the quantity supplied, or when the product’s price is below the equilibrium price

when the quantity supplied exceeds the quantity demanded, or when the product’s price is above the equilibrium price.

Which best describes the following?

Bread and Butter : Coffee and Creamer

Pencils and Notebooks : Phone and Sim Card

Car and Petroleum : Movies and Pop Corn

A government‐set maximum price that can be charged for a good or service

A government‐set minimum price that can be charged for a good or service

a measure of the strength of buyers’ or sellers’ responses to a price change

a strong response to a price change; occurs when the percentage change in the quantity demanded or supplied is greater than the percentage change in price

a weak response to a price change; occurs when the percentage change in the quantity demanded or supplied is less than the percentage change in price.

Elastic Price Change and Total Revenue Total revenue moves in what direction of a price change when consumers react strongly or elastically.

 Inelastic Price Change and Total Revenue Total revenue moves in what direction of a price change when consumers react weakly or inelastically?

the different amounts of a product that a buyer would purchase at different prices