Term Definition
demand the desire willinginess and ability to buy a good or service
demand schedule table showing quantities demanded at diffrent possible prices
demand curve downward sloping line that graphically shows the quanities demanded at each possible price
law of demand the concept that people are normally offer more for sale at higher prices and less at lower prices
market demand the total demand of all consumers for a product or service
utility the amount of satisfaction one gets from a good or service
marginial utility the total amount of satisfaction all consumers have for a good or service
substitute competing product that consumers can use in place of another
complement product often used with another product
demand elasticity measure of responsiveness relating change in quantity demanded to change in price
supply the amount of goods and services that producers are able and willing to sell at various prices during a specific 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 quantity supplied at different possible prices
supply curve upward sloping line that graphically shows the quantities supplied at each possible price
profit the money a business receives for its products or services over and above their cost
market supply the total of all the supply schedules of all businesses that provide the same good or service
productivity the degree to which resources are being used efficiently to produce goods and services
technology the methods or processes used to make goods or 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
shortage situation in which quantity demanded is greater than quantity supplied
equilbrium price the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy
price ceiling maximum price that can be charged for goods and services, set by the 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
civcs ch 21

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