Term | Definition |
demand | the desire, willingness,and ability to buy a good or sevice |
demand schedule | table showing quantities demanded at different possible prices |
demand curve | download-sloping line that graphically shows the quantities demanded at each possible price |
law of demand | the concept the people are normally willing to buy less a product of the price is high and more of it if the price is low |
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 |
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 with another product |
demand elasticity | measure of responsiveness relating change in quantity demanded to a change |
supply | the amount of goods and services that producers are able and willing 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 scuedule | table showing quantities supplied at different possible prices |
supply curve | upward-sloping line that graphically shows the quantities supplied at each supplied at each possible price |
profit | the money a business receives for its products or services over and above its cost |
market supply | the total of all the supply schedules of all the business the provide the same goods or services |
productivity | the degree to which resources are being used efficiently to produce goods and 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 then quantity demanded; situation in which government spends less then it collects in revenuses |
shortage | situation in which quantity demanded is greater than quantity supplied |
equilibrium 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 changed for goods and services, set by the government |
price floor | minimum price that can be changed for goods and services, set by the government |
minimum wage | lowest legal wage that can be paid to most u.s. workers |