1. 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

2. 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