V. Fill in the blanks with the words in the frame

direct down price a change in price production supply nature other goods left increased law of supply quantity supplied up supply

The schedule of different prices and the amount that the seller is willing and able to offer for sale at each price is known as 1) ……………. When the price changes, the amount the seller will sell, the 2)………….. changes. There is a 3)……… relation between price and the quantity supplied.

The relation is known as the 4)…………... This means that as price goes up, the quantity supplied goes 5)…………... And as the price goes down, the quantity supplied goes 6) ……………...

The quantity supplied can be changed only by a change in 7) …………. A change in a determinant of supply will change 8) ………… itself. The determinants of supply include a change in 9) …………, the cost of 10)…………, the price of 11) ………, and the expectation of 12) ………..

When supply decreases, the supply curve shifts 13)…………. A shift of the supply curve to the right means that supply has 14)…………….

demand quantity demanded falls law of demand down price demand related goods income price normal complement right up taste demand rises

decrease left substitutes complements substitute

quantity demanded inverse

The schedule of different prices and the amount that the buyer is willing and able to buy at each price is known as 1)…………….. When price changes the amount the buyer will buy, the 2)………….. changes. There is an 3)………….. relationship between price and quantity demanded.

The relation is know as the 4)…………….. This means that as the price goes up, the quantity demanded goes 5)………………. And as the price goes down, the quantity demanded goes 6)……………. The quantity demanded can be changed only by a change in 7)…………….. A change in a determinant of demand will change 8)…………… itself. The determinants of demand include the price of 9)……………, 10) ………….., 11) …………, and the expectation of a change in 12)………………... An increase in income will increase demand for a 13)…………. good. When demand increases, the demand curve shifts to the 14)…………………. An expectation of lower prices would cause demand to 15)…………... A decrease in demand means that the demand curve shifts to the 16) ……………...

Goods that are related are either 17) ………….. or 18)…………. When the price of one good rises, the demand for its substitute 19)……………. An increase in the price of butter increases the demand for margarine, its 20) ……………...

When the price of one good rises, the demand for its complement 21)…………... An increase in the price of shoes decreases demand for shoelaces, a 22)……………….. An increase in the price of shoes results in a decrease in the 23) …………….for shoes. Also there is a change in 24)……………… for shoelaces.