Objective 5 Flashcards
1
Q
Law of demand
A
Quantities of a good/service buyers are willing to purchase at a given price.
2
Q
Law of supply
A
Quantities of a good/service sellers are willing to sell at a given price.
3
Q
Market clearing price
A
The price at which buyers and sellers are willing to trade with no surplus.
4
Q
Market equilibrium
A
The price and quantity of an item at which buyers and sellers are willing to trade; where quantity supplied and quantity demanded are equal.
