As gasoline prices increase, people tend to drive less, carpool more, or switch to more fuel-efficient vehicles, leading to a decrease in quantity demanded.

If the price of corn rises, farmers will be incentivized to plant more corn, increasing the quantity supplied to the market.

Because demand is inelastic, companies can increase prices without significantly reducing quantity demanded. This is because people need the drugs regardless of price.

If demand increases, producers can quickly increase production, leading to a relatively small price increase.

Luxury cars are normal goods with high income elasticity. During a recession (income decreases), demand for luxury cars will decrease significantly.

Coffee and tea are substitutes. If the price of tea increases, the demand for coffee will increase.

If the price ceiling is below the equilibrium rent, it creates a shortage of apartments, as quantity demanded exceeds quantity supplied.

The tax shifts the supply curve to the left, increasing the price of cigarettes and decreasing the quantity sold. This also generates tax revenue for the government.

The tariff increases the price of imported steel, making domestic steel producers more competitive and increasing their production and profits.

The quota limits the amount of imported sugar, leading to higher domestic sugar prices as supply is restricted.

Discount sales increase consumer surplus, as consumers pay less than what they were willing to pay, increasing their overall benefit.

Farmers' markets allow producers to sell directly to consumers, potentially increasing producer surplus by eliminating intermediaries and capturing a larger share of the revenue.

If demand exceeds supply, prices can rise until equilibrium is restored. If supply exceeds demand, prices can fall until equilibrium is restored.

As prices rise, quantity demanded falls.

As prices rise, quantity supplied increases.

Measures how much quantity demanded changes when price changes.

Measures how much quantity supplied changes when price changes.

Measures how quantity demanded changes with changes in income.

Measures how quantity demanded of one good changes with the price of another.

The price and quantity at which supply and demand curves intersect.

The difference between what consumers are willing to pay and what they actually pay.

The difference between what producers are willing to sell for and what they actually receive.

A maximum legal price set by the government.

A minimum legal price set by the government.

Taxes on imported goods.

Limits on the quantity of imported goods.

The loss of total surplus when the market is not at equilibrium.

The rightward shift indicates an increase in demand, leading to a higher equilibrium price and quantity.

The leftward shift indicates a decrease in supply, leading to a higher equilibrium price and a lower equilibrium quantity.

The demand curve is vertical, indicating that quantity demanded does not change regardless of price.

The supply curve is horizontal, indicating that producers are willing to supply any quantity at a given price.

The price ceiling creates a shortage, as quantity demanded exceeds quantity supplied at the ceiling price. Deadweight loss is also created.

The price floor creates a surplus, as quantity supplied exceeds quantity demanded at the floor price. Deadweight loss is also created.

The tariff increases the price of imports, reduces the quantity of imports, increases domestic production, and creates deadweight loss.

Consumer surplus is the area below the demand curve and above the equilibrium price. Producer surplus is the area above the supply curve and below the equilibrium price.

Deadweight loss is represented by the triangle formed due to the reduction in quantity traded because of the tax. It represents lost consumer and producer surplus.