Supply
The number of products that a firm is willing to sell is also known as the number it is willing to
Demand
when a good or service is actually sold
Product Market
Consumer goods and services are sold in the
Factor Market
The four factors of production are sold in the
Inelastic Demand
If a change in price results in a smaller relative change in the quantity sold, the product involved probably has
Elastic Demand
If a change in price results in a larger relative change in the quantity sold, the product involved probably has
Demand Schedule
A table that shows the number of items that could be sold at various prices
Supply Curve
A graph that shows the number of items a firm would be willing to sell at various prices
Diminishing Returns
The fact that after a point the costs of production per item increase as the number produced grows shows
Circular Flow Model
A chart that shows the flow of money, goods and services, and the four factors of production
Supply Schedule
A table that shows the number of items a firm would be willing to sell at various prices
Demand Curve
A graph that shows the number of items that would be sold at various prices
Complements
Two goods that are used together
Substitutes
Two goods that can be used in place of each other
Surplus
A market price above the equilibrium price will result in a _________________________ of the product
Law of Demand
The principle that says people will buy more of a product at a lower price than they will at a higher price (if nothing else changes)
Shortage
A market price below the equilibrium price will result in a _____________________ of the product.
Elasticity
The relationship between a change in price and a change in the quantity sold
Point of Equilibrium
A product's supply and demand curves will intersect at a
Determinants of Demand
Factors that can cause a demand curve to move to the left or right
Law of Supply
The principle of economics that states that at higher prices producers will be willing to offer more products for sale than at lower prices
Supply
The number of products that a firm is willing to sell is also known as the number it is willing to
Demand
when a good or service is actually sold
Product Market
Consumer goods and services are sold in the
Factor Market
The four factors of production are sold in the
Inelastic Demand
If a change in price results in a smaller relative change in the quantity sold, the product involved probably has
Elastic Demand
If a change in price results in a larger relative change in the quantity sold, the product involved probably has
Demand Schedule
A table that shows the number of items that could be sold at various prices
Supply Curve
A graph that shows the number of items a firm would be willing to sell at various prices
Diminishing Returns
The fact that after a point the costs of production per item increase as the number produced grows shows
Circular Flow Model
A chart that shows the flow of money, goods and services, and the four factors of production
Supply Schedule
A table that shows the number of items a firm would be willing to sell at various prices
Demand Curve
A graph that shows the number of items that would be sold at various prices
Complements
Two goods that are used together
Substitutes
Two goods that can be used in place of each other
Surplus
A market price above the equilibrium price will result in a _________________________ of the product
Law of Demand
The principle that says people will buy more of a product at a lower price than they will at a higher price (if nothing else changes)
Shortage
A market price below the equilibrium price will result in a _____________________ of the product.
Elasticity
The relationship between a change in price and a change in the quantity sold
Point of Equilibrium
A product's supply and demand curves will intersect at a
Determinants of Demand
Factors that can cause a demand curve to move to the left or right
Law of Supply
The principle of economics that states that at higher prices producers will be willing to offer more products for sale than at lower prices