Term Definition
Demand The desire willingness and ability to buy a good or service.
Demand Schedule Table showing quantities demanded at different possible price.
Demand Curve Downward-sloping line that graphically shows the quantities demanded to a change in price.
Law Of Demand The concept that people are normally wiling to buy less of a product if the price is high and more of it if the price is low.
Market Demand The total of all the supply schedules of all the consumers for a product or service.
Utility The amount of satisfaction one gets from a good or service.
Marginal Utility Additional use that is derived from each unit acquired.
Substitute A competing product that consumers can use in place of another.
Complement Product often used wit another product.
Demand Of Elastcity Measure of responsiveness relating change in quantity demanded to a change in price.
Supply The amount of goods and services that producers are able and wiling to sell at various prices during a specified time period.
Law Of Supply The principle that suppliers will normally offer more for sale at higher prices and less at lower prices.
Supply Schedule Table showing quantities supplied at different possible prices.
Supply Curve Upward-sloping line that graphically shows the quantities supplied at each possible price.
Profit The money a businesses receives for its products or services over and above its costs.
Market Supply The total of all supply schedules of all the businesses that provide the same good or service.
Productivity The degree to which resources are being used efficiently to produce goods or services.
Technology The methods or processes used to make goods and services.
Subsidy A government payment to an individual business or group in exchange for certain actions.
Supply Elasticity Responsiveness of quantity supplied to a change in price.
Surplus Situation in which quantity supplied is greater than quantity demanded situation in which government spends less than collects.
Shortage Situation in which quantity demanded is greater than supplied.
Equilibrium Price The price at which the amount producers are wiling to supply is equal to the amount consumers are wiling to buy.
Price Ceiling Maximum price that can be charged for goods and services set by government.
Price Floor Minimum price that can be charged for goods and services set by the government.
Minimum Wage Lowest legal wage that can be paid to most us workers.

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