Question

match the correct definition with each term

a good used in place of another good; price of one affects demand for the other.

points where qs=qd.

a good that is used with another good; price of one affects demand for the other:

prices above equilibrium where qs is greater than qd, result in this.

prices below equilibrium where qs is less than qd, result in this.

complement
substitute
equilibrium
surplus
shortage

Explanation:

Define substitute goods

Using the Substitutes and Complements knowledge point
A substitute is a good that can be used in place of another. When the price of one increases, the demand for its substitute increases.

• Definition: "a good used in place of another good; price of one affects demand for the other."
• Term: substitute

Define market equilibrium

Using the Market Equilibrium knowledge point
At equilibrium, the quantity supplied equals the quantity demanded.

• Definition: "points where QS=QD."
• Term: equilibrium

Define complement goods

Using the Substitutes and Complements knowledge point
A complement is a good used together with another good. When the price of one increases, the demand for its complement decreases.

• Definition: "a good that is used with another good; price of one affects demand for the other."
• Term: complement

Define market surplus

Using the Surplus and Shortage knowledge point
When the market price is above equilibrium, quantity supplied exceeds quantity demanded, leading to excess supply.

• Definition: "prices above equilibrium where QS is greater than QD, result in this."
• Term: surplus

Define market shortage

Using the Surplus and Shortage knowledge point
When the market price is below equilibrium, quantity demanded exceeds quantity supplied, leading to excess demand.

• Definition: "prices below equilibrium where QS is less than QD, result in this."
• Term: shortage

Answer:

Definition	Term
points where QS=QD.	equilibrium
a good that is used with another good; price of one affects demand for the other.	complement
prices above equilibrium where QS is greater than QD, result in this.	surplus
prices below equilibrium where QS is less than QD, result in this.	shortage