demand and supply Flashcards
1
Q
Market
A
Where or when buyers and sellers meet to trade or exchange goods or services
2
Q
Demand
A
The quantity of a product that consumers are able and willing to purchase at various prices over a period of time
3
Q
Consumer surplus
A
The extra amount that a consumer is willing to pay for a product above the price that is actually paid
4
Q
Supply
A
The quantity of a product that producers are willing and able to provide at different market prices over a period of time
5
Q
Producer surplus
A
The difference between the price a producer is willing to accept and what is actually paid
6
Q
Equilibrium price
A
The price where demand and supply are equal
7
Q
Allocating efficiency
A
Where consumer satisfaction is maximised
