Chapter 4 - Demand, Supply, and Markets

Consumer

________ or producer communication or cooperation Everything is determined by the price.

Yellow Pages

The law of demand applies to millions of products sold in grocery stores, department stores, clothing stores, shoe stores, drugstores, music stores, bookstores, hardware stores, other retailers, travel agencies, and restaurants, as well as mail- order catalogs, ________, classified ads, online sites, stock markets, real estate markets, job markets, flea markets, and all other m Even decisions that appear to be more personal than economic, such as whether or not to keep a pet, are subject to the law of demand.

particular commodities

Prices communicate to existing and future suppliers about the benefits of manufacturing ________.

commercial pressures

Change is not compelled by ________.

income rises

Because pizza is a typical good, its demand curve moves to the right as money ________.

Consumers

________ have a variety of methods for attempting to satisfy any given need.

Substitution Effect

When the price of a good falls, that good becomes cheaper compared to other goods so consumers tend to substitute that good for other goods

Disequilibrium

condition that exists in a market when the plans of buyers do not match those of sellers; a temporary mismatch between quantity supplied and quantity demanded as the market seeks equilibrium