Competency 2.3 - analyze the interaction of supply and demand in determining production, distribution, and consumption Flashcards
1
Q
demand
A
the relationship that shows how much someone will pay for something
2
Q
supply
A
the relationship between price and corresponding quantities produced
3
Q
equilibrium
A
the intersection of the supply-and-demand
4
Q
elasticity
A
the measure of the market’s responsiveness of quantity to price
5
Q
excess demand
A
when prices fall below equilibrium
6
Q
excess supply
A
when prices rise above equilibrium
