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Glossary
|
Term |
Definition |
|
Supply |
How much of something producers are willing to make and sell at different prices |
|
Demand |
How much of something consumers are willing to buy at different prices |
|
Law of supply and demand |
The rule that says that when the price of a product goes up, the quantity supplied goes up and the quantity demanded goes down, and vice versa |
|
Supply curve |
A graph that shows the relationship between the price of a product and the quantity that producers are willing to supply |
|
Demand curve |
A graph that shows the relationship between the price of a product and the quantity that consumers are willing to buy |
|
Equilibrium point |
The point where the supply curve and the demand curve meet, where the price and quantity are balanced |
|
Surplus |
When there is more supply than demand in the market |
|
Shortage |
When there is more demand than supply in the market |
|
Price determination |
The process of finding the equilibrium price in a market |
|
Market equilibrium |
The situation where supply and demand are equal in a market |
|
Market |
A place where buyers and sellers meet to exchange goods and services |
