Econ Glossary - micro 2.2-2.3

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Across
  1. 3. Goods that can replace each other. If the price of one rises, people will buy more of the other (e.g. tea and coffee).
  2. 6. The quantity of a good or service that consumers are willing and able to buy at different prices.
  3. 7. Demand is inelastic if a change in price only causes a small change in the quantity demanded. People are not very sensitive to price changes.
  4. 9. Demand is elastic if a small change in price causes a big change in the quantity people want to buy. People are sensitive to price changes.
  5. 10. Goods that are not essential for life. People buy them only when they have extra money. Demand is usually elastic (e.g. designer jewellery).
Down
  1. 1. A measure of how much the quantity demanded of a product changes when its price changes.
  2. 2. Money given by the government to producers to reduce their costs, encourage production or keep prices low.
  3. 4. The quantity of a good or service that producers are willing and able to sell at different prices.
  4. 5. Basic goods or services people need to live. Demand for necessities is usually inelastic (e.g. water, rice).
  5. 8. Money that individuals or businesses must pay to the government.