Question

matching 5 points
match the correct definition with each term

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

equilibrium
points where qs=qd.

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

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

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

Explanation:

The image is oriented upside down. Let's read and analyze the terms and definitions by rotating them mentally.

The prompt asks to "Match the correct definition with each term". There are 5 terms on the left and 5 definitions on the right.

Analyze the terms

The terms listed on the left (from top to bottom when rotated correctly) are:

1. shortage
2. complement
3. surplus
4. equilibrium
5. substitute

Analyze the definitions

The definitions listed on the right (from top to bottom when rotated correctly) are:

• Definition A: "prices below equilibrium where QS is less than QD, result in this."
• Definition B: "a good used in place of another good; price of one affects demand for the other."
• Definition C: "prices above equilibrium where QS is greater than QD, result in this."
• Definition D: "points where QS=QD."
• Definition E: "a good that is used with another good; price of one affects demand for the other."

Match each term to its definition

• shortage: This occurs when the quantity supplied (\(QS\)) is less than the quantity demanded (\(QD\)). This matches Definition A: "prices below equilibrium where QS is less than QD, result in this." We apply the Surplus and Shortage concept here.
• complement: This is a good that is consumed together with another good. This matches Definition E: "a good that is used with another good; price of one affects demand for the other." We apply the Substitutes and Complements concept here.
• surplus: This occurs when the quantity supplied (\(QS\)) is greater than the quantity demanded (\(QD\)). This matches Definition C: "prices above equilibrium where QS is greater than QD, result in this." We apply the Surplus and Shortage concept here.
• equilibrium: This is the market state where quantity supplied equals quantity demanded. This matches Definition D: "points where QS=QD." We apply the Market Equilibrium concept here.
• substitute: This is a good that can be used in place of another. This matches Definition B: "a good used in place of another good; price of one affects demand for the other." We apply the Substitutes and Complements concept here.

Answer:

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