| Question | Answer |
| demand | the relationship between the various possible prices of a product and the quantities of that product consumers are willing to purchase |
| quantity demanded | the amount of a product consumers are willing to purchase at each price |
| law of demand | states that there is an inverse relationship
between a product’s quantity
demanded and its price |
| demand schedule | a table that shows possible combinations
of prices and quantities demanded
of a product |
| demand curve | a graph that expresses possible combinations
of prices and quantities
demanded of a product |
| change in quantity
demanded: | the effect of a price change on quantity demanded |
| market demand | the sum of all consumers’ quantity demanded
for a product at each price |
| demand factors | factors that can cause an increase or a
decrease in a product’s demand |
| increase in demand | an increase in the quantity demanded
of a product at all prices |
| decrease in demand | a decrease in the quantity demanded of a product at all prices |
| normal products | products whose demand changes directly
with income |
| inferior products | products whose demand changes inversely with income |
| substitute products | products that can be consumed in place of one another |
| complementary products | products that are consumed together |
| supply | the relationship between the various possible
prices of a product and the
quantities of the product that
businesses are willing to supply |
| quantity supplied | the amount of a product businesses are
willing to supply at each price |
| market supply | the sum of all producers’ quantities
supplied at each price |
| supply schedule | a table that shows possible combinations of
prices and quantities supplied
of a product |
| supply curve | a graph that expresses possible combinations
of prices and quantities supplied
of a product |
| change in quantity supplied | the effect of a price change on quantity supplied |
| supply factors | factors that can cause an increase or a
decrease in a product’s supply |
| increase in supply | an increase in the quantity supplied
of a product at all prices |
| decrease in supply | a decrease in the quantity supplied
of a product at all prices |
| market equilibrium | the stable point at which demand
and supply curves intersect |
| surplus | an excess of quantity supplied over quantity demanded |
| shortage | an excess of quantity demanded over quantity supplied |
