Business Essentials 2.02

The situation that exists when demand is greater than supply

Productive resources; human and natural resources andcapital goods.

Desires for things that can be obtained without spendingmoney

Items found in nature that are used to produce goods andservices.

The amount of money paid for a good, service, or resource

The situation that exists when supply is greater than demand

Giving up all or a part of one thing in order to get something else.

A desire for something that is not required.

principle states that the supply of agood or service will increase when demand is great and decrease when demand islow.

the quantity of a good orservice that people will buy varies inversely with the price of the good or service

A condition resulting from the gap between limited resources andunlimited wants for goods and services

An indication of how changes in price will affect changes in the amountsdemanded and supplied

The economic process or activity of producing goods and services

The point at which the quantity supplied is equal to the quantitydemanded.

The economic process of trading one good/service for another.

A form of demand in which changes in price do not affectdemand.