Economics Vocabulary

3. how economists describe the way that consumers respond to price changes
4. says that when a good's price is lower, consumers will buy more of it
7. consumers demand fewer of those when their income increases
8. a maximum price, set by the government, that can be legally charged for a good or service
9. the desire to own something and the means to pay for it
11. term of two goods that are bought and used together
12. a government payment that supports a business or market
13. literally means, "all other things held constant"
17. graph that demonstrates how the demand for a commodity or service varies with changes in its price
20. takes place when consumers can no longer afford to but the same combination of goods, and cut back purchases
21. factors that can lead to shifting of demand up or down

1. takes place when a consumer reacts to a rise in the price of one good by consuming less of that good and more of another good
2. lists that quality of a good that a person will purchase at various prices in a market
5. a cost that does not change no matter how much of a good is produced
6. demand that is relatively unresponsive to price changes
10. term for goods that are used in place of one another
14. consumers demand more of these when their income increases
15. factors that are able to change
16. demand that is very responsive to price changes- both increases and decreases
18. the statistical characteristics of populations
19. shows that quantities demanded by consumers at various prices in a market