MARKET DEMAND, SUPPLY, AND EQUILIBRIUM Flashcards
it is the demand for a good or service by an individual
individual demand
individual demand is also known as
household demand
interaction of an individual’s desires with the quantities of goods and services that he or she is able to afford
individual demand
it is what a buyers pay for a unit of specific goods or services
price
it is the total number of units purchased at that price
quantity demand
table that show the quantity demand at each price
demand schedule
it shows the relationship between price and quantity demanded
demand curve
it is the situation when the price increases, the quantity demanded decreases
law of demand
we need to ____ together all the demand curves of the individual households to obtain the
market demand curve
it is the total quantity of good or service that all producers are willing to supply at the prevailing set of relative prices during period of time
market supply
it is obtained by adding together the individual supplies of all the firms in the economy
market supply
as the prices increases, the quantity supplied increases
law of supply
it is the achieved at the price at which quantities demanded and supplied are balanced or equal
market equilbrium
we can represent it in graph by showing the combined price and quantity at which the supply and demand curves intersect
market equilbrium
it is when the quantity supply is greater than quantity demand
surplus
