Ceteris Paribus
all other things held constant
Subsidy
A government payment that supports a business or market
Shift to Left
The RISE OF INPUT COSTS will cause what type of action with the SUPPLY curve
Price
Elasticity of demand measures the quantity demanded by consumers in response to a _____ change
Elastic
If a small change in price results in a large change in quantity demanded, then demand is ________
Less
If elasticity is ____ than one, demand or supply is inelastic
Greater
If elasticity is _____ than one, demand or supply is elastic
loss
A seller facing elastic demand will experience a _______ in total revenue if she raises her price
Inelastic
In order to raise the most tax revenue possible, governments would do best by taxing a product with _______ demand
Necessity
A product consumers think is a _______ will tend to have an inelastic demand
Elastic
The larger piece of your budget an item takes up, the more ______ demand will be for that item
Elastic
A large pool of substitutes for an item will cause demand to be _______
Time
The key factor in determining elasticity of supply is ______
Equilibrium
The point at which quantity demanded and quantity supplied are equal
Disequilibrium
Describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity demanded in a market
Black Market
People conduct businesses w/o regard for government controls on price or quantity
Price ceiling
A maximum price that can be legally charged for a good or service
Price floor
A minimum price for a good or service
Minimum wage
A minimum price that an employer can pay a worker for an hour of labor
Rent control
A price ceiling placed on rent
Surplus
Situation in which quantity supplied is greater than quantity demanded; also known as excess supply
Shortage
A situation in which the quantity demanded is greater than the quantity supplied
Elastic
Describes demand that is very sensitive to a change in price
Inelastic
Describes demand that is not very sensitive to a change in price