Price theory Flashcards
1
Q
What is price theory
A
the economic theory that states that the price of goods and services depends on the relationship between their supply and demand
2
Q
What is demand
A
the quantity of a good or service that consumers want to buy when the good or service is a specific price at a specific time/place
3
Q
What is the law of demand
A
The higher the price the lower the demand. the lower the price the higher the demand. When demand increases and the supply of the good or service does not change, price increases
