Economics Vocabulary Review

Human activity that provides the goods or services in an economy.

Different quantity of a resource, good, or service that will be purchased at various prices.

The most important alternative that is given up as the result of a specific economic condition.

A payment usually of money for labor or services.

Different quantity of a resource, good, or service offered for sale at various prices.

The conditions to not have all the goods and services people want.

A gain usually in money that comes from labor, business, or property.

Which of the following situations will most likely make the price of an item go up?

Which of the following situations will most likely make the price of an item go down?

Caseys and Quik Trip are competitors because they both sell gas. Caseys gas station is selling gas for $2.19 per gallon. Quik Trip has decided to sell their gas for 5 cents less per gallon. How will this change in price affect consumers?