M1-L2: The Essentials of the Law of demand and supply Flashcards
A fundamental principle of economics that states that at a higher price consumers will demand a lower quantity of a good.
The Law of Demand
Expresses the sum of quantity demanded at each price across all consumers in the market.
Market Demand Curve
A table that shows the quantity demanded at different prices in the market.
Demand Schedule
An economic principle referring to a consumer’s desire to purchase goods and services and willingness to pay a price for a specific good or service.
Demand
A reduction in demand shifts the demand curve to the ____.
Left
An increase in demand shifts the demand curve to the _____.
Right
The microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
The Law of Supply
A table that shows the quantity supplied at different prices in the market.
Supply Schedule
Shows the relationship between quantity supplied and price on a graph.
Supply Curve
A fundamental economic concept that describes the total amount of a specific good or service that is available to consumers.
Supply
A reduction in supply shifts the supply curve to the ____.
Left
An increase in supply shifts the supply curve to the _____.
Right
