A change in quantity demanded is a movement *along* the demand curve due to a change in price, while a change in demand is a *shift* of the entire curve due to factors other than price.

A change in quantity supplied is a movement *along* the supply curve due to a change in price, while a change in supply is a *shift* of the entire curve due to factors other than price.

Price floors are minimum prices set *above* the equilibrium, leading to surpluses, while price ceilings are maximum prices set *below* the equilibrium, leading to shortages.

Both tariffs and quotas restrict international trade. Tariffs are taxes on imports, while quotas are quantity limits on imports.

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay, while producer surplus is the difference between what producers receive and their cost of production.

Elastic demand means quantity demanded is sensitive to price changes, while inelastic demand means quantity demanded is not very sensitive to price changes.

Elastic supply means quantity supplied is sensitive to price changes, while inelastic supply means quantity supplied is not very sensitive to price changes.

Demand for normal goods increases as consumer income rises, while demand for inferior goods decreases as consumer income rises.

Substitute goods can be used in place of each other (e.g., tea and coffee), while complementary goods are used together (e.g., coffee and sugar).

Short-run supply elasticity is generally lower because firms have limited ability to adjust production in the short term, while long-run supply elasticity is higher because firms can make more significant adjustments over time.

If gasoline prices increase, consumers will likely buy less gasoline.

If the price of wheat increases, farmers will likely produce more wheat.

An increase in consumer income will likely increase the demand for luxury cars, shifting the demand curve to the right.

A technological improvement will likely increase the supply of smartphones, shifting the supply curve to the right.

An increase in the price of coffee will likely increase the demand for tea, shifting the demand curve for tea to the right.

A shortage of labor will likely decrease the supply of agricultural products, shifting the supply curve to the left.

A price ceiling below the equilibrium price will likely decrease the quantity of apartments supplied, leading to a shortage.

A price floor above the equilibrium price will likely decrease the quantity of milk demanded, leading to a surplus.

If consumer tastes shift towards vinyl records, the demand for vinyl records will increase, shifting the demand curve to the right.

A tax on cigarettes will likely decrease the supply of cigarettes, shifting the supply curve to the left.

It leads to a surplus of agricultural products.

It leads to a shortage of rental apartments.

It decreases the supply, leading to a higher equilibrium price and lower equilibrium quantity.

It increases the demand, leading to a higher equilibrium price and higher equilibrium quantity.

Rent control, a type of price ceiling, often reduces the availability of housing.

Minimum wage laws, a type of price floor, can lead to a surplus of labor (unemployment).

A tariff increases the price of imported goods, benefiting domestic producers by increasing demand for their products.

A quota reduces the quantity of imported goods, leading to higher prices for domestic consumers.

A carbon tax increases the cost of polluting activities, incentivizing firms to reduce pollution.

Government regulation can increase the safety of automobiles but may also increase their cost.