Download Sides Game with Answers

Sides Game
Increase in the Price of Corn
• Effect on demand for corn?
• NONE
Decrease in P and Q
• What single shift has occurred?
• Decrease in Demand
• 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
Point to the Equilibrium Price
A price increase of a product will
cause a decrease of _________ for
that product
• Quantity Demanded
price floors cause?
• Surpluses
Example of substitutes of
consumption
• Butter/margarine
Example of complements of
consumption
• Pb and j
Example of complements of
production
• Beef and leather
• Donuts and donut holes
Which is perfectly inelastic?
Example of substitutes of
production
• Cakes or cupcakes
Law of Demand states
• Consumers will buy more at a lower price
and less at a higher price
Law of Supply states
• Producers are willing and able sell less at
a lower price and more at a higher price
A good with inelastic demand
• Gas (any necessity)
A good with elastic demand
• Lemon scented garbage bags
Government paying producers a
portion of production costs is called
• subsidy
Point to the floor
Minimum wage is a price floor
If both supply and demand
increase, what do we know for
sure?
Q will increase
Illegal sales resulting from price
controls occur in what type of
markets?
Black Markets
An increase in the price of rubber
will cause what shift in the tire
market?
Decrease supply
An increase in the price of rubber
will cause what changes to price
and quantity in the tire market?
P increase and Q decrease
Movement along a demand
curve represents a change in
quantity demanded.
Point to the ceiling
Shifting a demand curve
represents a change in demand
Which is perfectly elastic?
The point where the quantity
supplied is equal to the quantity
demanded.
equilibrium