Supply and Demand Vocab Review

the desire, ability, and willingness to buy a product.

Products that can be used in place of one another.

A change in total revenue from the sale of one additional unit of output.

total output produced by a business or a firm.

principle that more will be offered for sale at high prices than at lower prices.

The additional output produced when one additional input is added.

statement that more will be demanded at lower prices and less at higher prices.

A change in the amount of products for the sale when the price changes.

total fixed costs.

The sum of variable and fixed costs.

consumers demand different amounts at every price, causing demand curve to shift (r) and (l).

product that increases the use of another product.

Meausure of responsiveness relating change in quantity demanded to change in price.

A graph that shows the quantity demanded at all possible prices in the market at a given time.

A given change in price causes a relatively larger change in quantity demanded.

The situation where the amount of products for sale changes while the price remains the same.

A production cost that does not change as total business output changes.

Decision making that compares the additional costs with the additional benefits of an action.