CHALLENGE Match the Key phrases (A-J) with their Definitions (1-10) Demand B Effective demand C Derived demand D Elastic demand E Inelastic demand F Inferior good G Excess supply H Inelastic supply I Disequilibrium J Incentives 1 When demand for a product falls as real incomes increases. 2 Prices where demand and supply are out of balance. 3 When supply is greater than demand and there are unsold goods in the market. 4 For competitive markets to work efficiently economic agents must respond to price signals in the market. 5 Demand that comes from the demand for something else. 6 When the coefficient of price elasticity of supply is less than +1. 7 Demand for which the coefficient of price elasticity of demand is greater than 1. 8 Quantity of a good or service that consumers are willing and able to buy at a given price in a given time period. 9 When a consumers' desire to buy a product is backed up by an ability to pay for it do we speak of demand. 10 When the coefficient of price elasticity of demand is less than 1. CHALLENGE Match the Key phrases (A-J) with their Definitions (1-10) Demand and Supply

CHALLENGE A B C D E F G H I J Demand Quantity of a good or service that consumers are willing and able to buy at a given price in a given time period. 8 B Effective demand When a consumers' desire to buy a product is backed up by an ability to pay for it do we speak of demand. 9 C Derived demand Demand that comes from the demand for something else. 5 D Elastic demand Demand for which the coefficient of price elasticity of demand is greater than 1. 7 E Inelastic demand When the coefficient of price elasticity of demand is less than 1. 10 F Inferior good When demand for a product falls as real incomes increases. 1 G Excess supply When supply is greater than demand and there are unsold goods in the market. 3 H Inelastic supply When the coefficient of price elasticity of supply is less than +1. 6 I Disequilibrium Prices where demand and supply are out of balance. 2 J Incentives For competitive markets to work efficiently economic agents must respond to price signals in the market. 4