Chapter 2 - Supply and Demand

insufficient allocation

________ refers to the price on an item being lessened, and still not being sold, which is often associated with resulting in wasted money, potential, and lower levels of productivity.

expensive alternatives

An inferior good is commonly associated with negative contributing factors, as it is less desirable than ________.

Cheap food

________ originated from the Great Depression as a prolonged economic slump led to low prices and farmers were suffering severely.

Normal Good

refers to a family’s total income increasing, as it increases the demand for goods, being considered the normal case for purchasing larger value items

Inferior good

refers to the rise in a family’s total income decreasing, as it creates the demand for good when the state of affordability is in question.

Inferior good

_________ is commonly associated with negative contributing factors, as it is less desirable than expensive alternatives.

Supply Price

refers to the price of a given quantity at which producers will supply that price.

Price Floors

_______ lead to insufficient allocation of sales among sellers as the people who were willing to sell items at a low price did not always manage to sell all of their inventory

Quality control

refers to an upper limit on the quantity of some goods that can be bought or sold.

Demand Price

refers to the price of a given quantity of which consumers will demand that quantity.

Quality Controls

prevent mutuality beneficial transactions from occurring, from transactions that would benefit both the consumer and the producers.