Economy Part B Flashcards
Demand
The amount of a good or service that people are able and willing to buy at various prices during a geven time
Amount
How much consumers are willing to buy
Willing to buy
Consumers must be willing to buy
Able to buy
Consumers must the ability(money) to buy
Price
The quantity that consumers are willing and able to buy
Law of demand
As price increases quantity demanded increases
Demand shifters
A factor over than price that can cause a Change in demand
The number of consumers-seasonal
Consumer income-recession Will change amount of income
Consumers tastes and preferences- change
Price of substitute goods- burritos vs. Taco’s
Supply
Amount f a good or service that producers are willing and able to sell at vaious prices at a given time period.
Law of supply
As the price of a good or service increases, the quantity supplied increases.
Supply shifters
A factor other than price that can cause a change in supply for goods and services.
Number of suppliers-companies making the product
Cost of Natural resources-record harvest or fungas or fire
Natural disaster-weather or water or Earthquakes
Technology-new machines
Goverment actions-taxes and subsidies-goverment awarding money to a certain industry
Market
A place where buyers and Sellers of the same good or service pcome together.
Equilibrium price
The price that the marketplace sets for a good or service
Economice Roel of prices
Price dries the market for goods and services
