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10 Cards in this Set
- Front
- Back
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Demand
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Quantity of goods and services that consumers are willing to purchase at various prices.
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What determines demand?
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Needs, wants, incomes
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The Law of Demand
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As the price of a good increaes, the quantity of the good demanded falls.
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Supply
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The amount of a good or service offered for sale.
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What determines supply?
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Demand often dictates supply.
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The Law of Supply
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As the price of a good rises, producers are willing to supply more of the good.
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The Law of Supply and Demand
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The price of a good or service adjusts until the amount producers are willing to produce equals the amount consumers are willing to consume.
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The price at which supply equals demand is known as____.
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Equilibrium Price
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What might cause businesses to expand and/or contract?
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-Demand for product/service changes
-New technologies |
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Business Cycle
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Expansions and contraction by many industries at once.
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