Market Equilibrium and Supply-Demand Analysis Quiz

Balanced state where supply matches demand.

Prices rise as demand surpasses supply, leading to reduced availability.

Consumers buy less as prices rise due to substitution and income effects.

Illustrates the quantity of a good producers are willing to supply at various prices.

Financial support given to producers to encourage production or reduce costs.

As price rises, the quantity supplied increases and vice versa.

Prices and quantities rise to meet higher demand levels.

Legally set floor restricting prices from falling below a certain level.

Enhances productivity leading to more supply and lower prices.

Quantity demanded changes infinitely with any change in price.

Various factors including income changes, preferences, and expectations.

Quantifies the sensitivity of quantity demanded to price changes.

Legally set upper limit on prices, often to protect consumers.

Change in quantity demanded due to price change; change in demand due to other factors.

Items for which demand decreases as consumer income rises.