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Supply and Demand

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Term
Definition
Law of Demand   the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises  
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Law of Supply   the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises  
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Quantity Demanded   the amount of a good that buyers are willing and able to purchase  
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Quantity Supplied   the amount of a good that sellers are willing and able to sell  
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Demand Schedule   a table that shows the relationship between the price of a good and the quantity demanded  
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Supply Schedule   a table that shows the relationship between the price of a good and the quantity supplied  
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Demand Curve   a graph of the relationship between the price of a good and the quantity demanded  
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Supply Curve   a graph of the relationship between the price of a good and the quantity supplied  
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Equilibrium   a situation in which the market price has reached the level at which quantity supplied equals quantity demanded  
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Shortage   a situation in which quantity demanded is greater than quantity supplied  
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Surplus   a situation in which quantity supplied is greater than quantity demanded  
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Created by: dillon.nerud
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