4 Flashcards
1
Q
market
A
any place where buyers and sellers meet to exchange goods and services
2
Q
voluntary exchange
A
drives markets – the notion that buyers and sellers believe they are each better off through the exchange of goods and services
3
Q
price signals
A
information markets generate to guide distribution of resources
4
Q
demand
A
downward sloping curve – as price increases consumers buy less, as price decreases consumers buy more
5
Q
supply
A
upward sloping curve – as price of a good increases, producers gain more profit, incentivizing them to produce more of a good
6
Q
equilibrium price/quantity
A
where supply and demand meet
7
Q
the four market behaviors
A
increase/decrease of supply/demand
