Markets: Supply & Demand Flashcards
Market
A place or situation where buyers and sellers interact for purposes of trade or exchange
Price
The sum of money paid for goods and services in a market
Supply
The quantity of goods or services offered for sale in a market.
Demand
The quantity of goods and services that will be purchased in a market.
Equilibrium Point
Where the supply and demand lines intersect. The place where buyers want to buy the same the amount that the sellers want to sell.
What happens when supply increases?
Demand and price decrease while quantity increases.
What happens when demand increases?
Supply and quantity decrease while price increases.
What happens when supply decreases?
Demand and price increase while quantity decreases.
What happens when demand decreases?
Supply and quantity increase while price decreases.
