Definitions Flashcards
1
Q
Competition
A
No buyer or seller controls the price in an exchange.
2
Q
Law of demand
A
As the price of a good or service rises, the people will buy less of that good or service.
3
Q
Law of supply
A
As the price of a particular good or service rises, people will produce more of that good.
4
Q
Equilibrium price
A
The price buyers and sellers agree a good/service is worth.
5
Q
Opportunity cost
A
The internal view of what something is worth. (sacrifice time vs money)
Ex) Not the physical $38 for a box of donuts. It is what the $38 could have gone for instead.
