Market Moves Worksheet
Economics Real-World Review Concept Booster Handout
Market Moves Worksheet
Name:
Date:
Reading Clue: Economics is about how buyers (you) and sellers (stores) make choices using prices.
1
Supply & Demand: The Price Seesaw
Demand = Buyers
When the Price goes UP, buyers want to purchase LESS.
When the Price goes DOWN, buyers want to purchase MORE.
Example: If pizza slices drop from $4 to $1, line lengths get longer!
Supply = Sellers
When the Price goes UP, sellers want to make and sell MORE.
When the Price goes DOWN, sellers want to make and sell LESS.
Example: If sneaker prices jump to $200, shoe factories make extra pairs!
Task A: Complete the sentence using the words MORE or LESS.
1. A video game goes on a 70% off flash sale. Buyer demand will be:
2. Milk production costs skyrocket and price doubles. Buyers will buy:
2
Types of Goods: How Products Connect
Substitute Goods
Goods that replace each other. You choose one OR the other.
Pair: Coke vs. Pepsi, or Apple vs. Android.
Complement Goods
Goods used together as a team. If you buy one, you buy both.
Pair: Peanut butter & jelly, or cars & gas.
Income Goods
Normal: Buy more when income rises (name-brand shoes).
Inferior: Buy when budget is tight (instant ramen).
Task B: Match the real product pair to its relationship type.
1. Hot dog buns and hot dog wieners
[ ] Substitutes [ ] Complements
2. Uber ride and Lyft ride
[ ] Substitutes [ ] Complements
3. Video game console and video game controller
[ ] Substitutes [ ] Complements
Economics Basics • Page 1 of 2 Turn page over for Elasticity Lab →
3
Price Elasticity: The "Rubber Band" Test
Part 2 of 2
Elastic Demand (Stretchy)
Buyers react strongly to price changes. If the price goes up, people quickly stop buying it or choose something else.
Clues:
- It is a WANT, not a need.
- There are many substitutes available.
- Real items: Soda cans, movies, candy.
Inelastic Demand (Rigid)
Buyers keep buying even if the price jumps. People have few alternatives and must have it.
Clues:
- It is a NEED for daily survival or work.
- Very few or zero close substitutes.
- Real items: Prescription medicine, gasoline.
Task C: Circle whether the product has Elastic or Inelastic demand:
1. Life-saving insulin medicine [ Elastic | Inelastic ]
2. Designer luxury sunglasses [ Elastic | Inelastic ]
4
Real-World Case Detective
Scenario 1
The Smartphone Battery Spike
The price of wireless phone chargers drops from $30 down to $10. As a result, tons of customers buy new wireless chargers.
What will happen to the demand for compatible phone cases (complement goods)?
The demand for compatible phone cases will: (rise / fall)
Scenario 2
The Movie Theater Ticket Spike
A cinema increases ticket prices from $12 to $22. Attendance plunges by 60% as people switch to streaming movies at home.
Is movie theater ticket demand elastic or inelastic?
What substitute product did customers choose instead?
Sentence Builder: Put It in Your Own Words
Fill in the blanks to explain why emergency heart surgery has inelastic demand:
Emergency heart surgery has inelastic demand because it is a vital (need / want) and patients cannot easily find a (substitute / complement) if the price rises.
Economics Basics • Page 2 of 2 Self-Check: Did you write legibly on every line?
Market Moves Answer Key
Teacher Answer Key For Market Moves Worksheet
Market Moves Answer Key
Instructional & Grading Guide
Economics Foundations
Reader Support Note: Praise students for using the visual arrows and bold clue words. Accept reasonable synonyms like "higher/lower" or "more/less".
1
Part 1: Supply & Demand Solutions
Task A Answers (Sentence Completion):
1. Video game goes on a 70% off flash sale. Buyer demand will be: MORE (or HIGHER)
2. Milk production costs skyrocket and price doubles. Buyers will buy: LESS (or LOWER)
Common Reader Misconception: Struggling readers often confuse the buyer's reaction with the seller's reaction. Remind them: "Demand is YOU at the checkout counter. When stuff is expensive, you put it back!"
2
Part 2: Types of Goods Solutions
Task B Answers (Classification):
1. Hot dog buns and hot dog wieners
Why: Eaten together as a package deal; buying one triggers buying the other.
Complements
2. Uber ride and Lyft ride
Why: Competing alternatives; a consumer chooses either Uber OR Lyft.
Substitutes
3. Video game console and video game controller
Why: Needed together to function; a controller complements the system.
Complements
Quick Discussion Check: Ask: "If you get a raise at your job, do you buy more brand-name sneakers (Normal Good) or instant ramen noodles (Inferior Good)?" This cements the income goods concept in seconds.
Teacher Answer Key • Page 1 of 2 Continue to Elasticity & Scenario Solutions →
3
Part 3: Elasticity & Case Lab Solutions
Key Page 2 of 2
Task C Solutions (Elastic vs. Inelastic):
1. Life-saving insulin medicine
INELASTIC No substitutes; essential need.
2. Designer luxury sunglasses
ELASTIC Luxury want; many cheap dupes.
Memory Anchor: Have students stretch imaginary rubber bands. "Elastic stretches with price; Inelastic snaps or stays locked in place because you can't walk away!"
4
Real-World Case Detective Solutions
Scenario 1: Smartphone Battery Spike Answer: RISE (or INCREASE)
Teacher Explanation: Because chargers and phone cases are complements, when people buy more wireless chargers, they naturally demand more compatible cases to match.
Scenario 2: The Movie Theater Ticket Spike
Elastic or Inelastic? ELASTIC (Big 60% drop = huge buyer reaction)
