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Supply && Demand

STUDY
PLAY
marginal utility
additional satisfaction
demand
the desire, willingness, and ability to buy a good or service
demand schedule
table that lists the various quantities of a product or service that someone is willing to buy over a range of prices
demand curve
graph that shows the amount of a product that would be bought at all possible prices in the market
law of demand
quantity demanded and price move in opposite directions
market demand
the total demand of all consumers for their product or service
utility
the pleasure, usefulness, or satisfaction we get from using a product
supply-side economics
government should cut taxes on business to improve productivity
trickle-down effect
increased productivity increases jobs for others and trickles down to lower class people
substitutes
consumers can use one thing in place of another
complements
products that are used together
demand elasticity
the extent to which a change in price causes a change in the quantity demanded
inelastic demand
price changes have little effect on the quantity demanded
supply
the various quantities of a good or service that producers are willing to sell at all possible market prices
law of supply
the principle that suppliers will normally offer more for sale at higher prices and less at lower prices
supply schedule
a numerical chart that illustrates the law of supply
price floor
government minimum price that can be charged for goods or services (surplus)
price ceiling
maximum price set by the government (shortage)
technology
refers to the methods or processes used to make goods and services
productivity
the degree to which resources are being used efficiently to produce goods and services
equilibrium price
achieving balance between supply and demand
surplus
amount by which the quantity supplied is higher than quantity demanded
shortage
amount by which the quantity demanded is higher than the quantity supplied