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Supply& Demand Vocab
Supply& Demand Vocabulary in Economics
Term | Definition |
---|---|
Market | Includes the customers and locations that a business wants to serve |
Supply | How much of a good or service a producer is willing and able to produce at different prices |
Demand | An individual's need or desire for a good or service at a given price |
Law of Demand | As prices decrease for a particular good or service, the demand for that item will increase and vice-versa |
Law of Supply | As prices increase for a particular good or service, the supply for that item will decrease and vice-versa |
Price | The amount at which a good or service will be sold in a market |
Profit Motive | The hope of making a profit |
Supply and Demand Graph | A visual representation of supply and demand |
Equilibrium or Market Price | The point at which supply and demand curves meet |
Competition | A contest for some prize, honor, or advantage |