Demand and Supply Vocabulary Review

Situation in which a product's price change has LITTLE impact on the quantity demanded by consumers

A legal minimum price below which a good or service may not be sold

Economic rule stating that if 2 items satisfy the same need and price of one rises, people will buy the other

A transaction in which a buyer and a seller exercise their economic freedom by working out their own terms of exchange

A product often used with another product

Table showing the quantities supplied at different possible prices

Rule stating that the additional satisfaction a consumer gets from purchasing 1 more unit of a product decreases

Economic rule stating that price and quantity supplied move in the same direction

Situation in which quantity demanded is greater than quantity supplied

The process of freely exchanging goods and services between buyers and sellers

Situation in which the rise or fall in a product's price GREATLY affects the amount that people are willing to buy

Any use of land, labor, and capital that produces goods and services more efficiently

A legal maximum price that may be charged for a particular good or service

Economic concept dealing with consumers' responsiveness to an increase or decrease in price of a product

The amount of a good or service that a consumer is willing and able to purchase at a specific price

Illegal market in which goods are traded at prices above their legal maximum prices or in which illegal goods are sold

Economic concept that deals with how much demand varies according to changes in price

The amount of a good or service that a PRODUCER is willing and able to SUPPLY at a specific price

The price at which supply is equal to demand

The amount of a good or service that consumers are able and willing to buy at various prices

The ability of any good or service to satisfy consumer wants

Economic rule stating that the quantity demanded and price move in opposite directions

Table showing quantities demanded at different possible prices

Upward sloping line that shows in graph form the quantities supplied at each possible price

Economic rule stating that individuals cannot buy same quantity if price rises while income stays the same

An additional amount of satisfaction

The amount of a good or service that producers are able and willing to sell at various prices

Economic rule that says as more units of production are added at some point total output increases at a diminishing rate

The distribution of goods and services based on something other than price

Situation in which quantity supplied is greater than quantity demanded

Downward sloping line that shows in graph form the quantities demanded at each possible price