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24 Cards in this Set
- Front
- Back
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Rationing |
Allocating something scarce among people who want more than is available. |
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Market-Clearing Price |
The price that balances the amount buyers want to buy with the amount sellers want to sell. |
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Supply |
The amounts sellers want to sell at different possible prices. |
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Demand |
The amounts buyers want to buy at different possible prices. |
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Shortage |
How much more of a product buyers want to buy than sellers want to sell at a given price. |
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Surplus |
How much more of a product sellers want to sell than buyers want to buy at a given price. |
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Competition |
Rivalry among buyers or among sellers. |
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Incentive to Produce |
Reasons for producing goods and services. |
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Change in Demand |
Buyers want to buy more than before at every price. |
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Information |
Market prices provide this for producers and consumers. |
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A higher price for a product |
causes buyers to buy less of it. |
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A market-clearing price is important because |
it balances the amounts demanded anf supplied. |
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Occurs when supply outstrips demand |
surplus |
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Where supply and demand meet |
market-clearing price |
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What scarcity results in |
rationing |
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What happens when new businesses enter a market. |
change in supply |
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when a fad hits the market, economists say there is a |
change in demand |
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The quantities sellers want to sell at different prices |
supply |
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Why businesses create goods and services. |
Incentive to Produce |
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Occurs when demand outstrips supply |
Shortage |
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The quantities consumers want to buy at different prices |
demand |
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This magazine publishes a list of top companies |
fortune |
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What you need to make decisions |
Information |
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Something that encourages you to take action |
Incentive |
