Across
- 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).
- 6. The quantity of a good or service that consumers are willing and able to buy at different prices.
- 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.
- 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.
- 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. A measure of how much the quantity demanded of a product changes when its price changes.
- 2. Money given by the government to producers to reduce their costs, encourage production or keep prices low.
- 4. The quantity of a good or service that producers are willing and able to sell at different prices.
- 5. Basic goods or services people need to live. Demand for necessities is usually inelastic (e.g. water, rice).
- 8. Money that individuals or businesses must pay to the government.