Economics-Supply and demand vocabulary – Flashcards
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Supply
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the amount of a product that producers are willing and able to offer at diferent prices
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demand
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the amount of a product consumers are willing and able to buy at different prices
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demand schedule
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table showing quantities demanded at different possible prices
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demand curve
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downward sloping line that graphically shows the quantities demanded at each possible price
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law of demand
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the concept that people are normally willing to buy less of a product if the price is high and more of a product if the price is low
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market demand
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the total demand of all consumers for a product or service
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utility
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the amount of satisfaction one gets from a good or service
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diminishing marginal utility
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decreasing satisfaction or usefulness as additional units of a product are acquired
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substitute
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a competing product that consumers can use in place of another
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complement
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product often used with another product
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law of supply
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the principle that suppliers will normally offer more for sale at higher prices and less at lower prices
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supply schedule
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tqable showing quantities supplied to a change in price
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supply curve
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Upward-sloping line that graphically shows the quantities supplied at each possible price
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market supply
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the total of the supply schedules of businesses that provide the same good or service
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productivity
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the degree to which resources are being used efficiently to produce goods and services
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subsidy
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a government payment that supports a business or market
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supply elasticity
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responsiveness of quantity supplied to a change in price
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shortage
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A situation in which quantity demanded is greater than quantity supplied
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surplus
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a situation in which quantity supplied is greater than quantity demanded
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equilibrium price
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The price that balances quantity supplied and quantity demanded
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profit
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the amount of money left over after expenses are taken out
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demand elascisity
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measure of responsivness relating change in quantity demanded to change in price
