Prices, Supply and Demand

Tendency of supplier to offer more of a good at a higher price

When quantity supplied is not equal to quantity demanded in a market

Describes demand that is not very sensitive to a change in price

A situation in which a good or service is unavailable

A measure of how consumers react to a change in price

Situation in which quantity supplied is greater than quantity demanded

Describes demand that is very sensitive to a change in price

A measure of the way quantity supplied reacts to a change in price

The amount a supplier is willing and able to supply at a certain price

The amount of goods available

A cost, charge or fee asked/paid for a good or service

When quantity demanded is more than quantity supplied

An expectation that encourages people to behave in a certain way

The point at which quantity demanded & quantity supplied are equal

The change in consumption resulting from a change in real income

When quantity supplied is more than quantity demanded

Reaction to an increase in a good's price by consuming less of that good & more of other goods

Consumers buy more of a good when its price decreases & less when its price increases

The desire to own something and the ability to pay for it