7 terms

2.02 Economic Terms

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Terms in this set (...)

Market
Includes the customers and locations that a business wants to serve.
Supply
How much of a good or service a producer is willing and able to produce at different prices.
Demand
An individual's need or desire for a good or service at a given price.
Law of Demand
As prices fall for a particular good or service, the demand for that item will increase and vice-versa.
Law of Supply
As the price of a particular good or service increases, the supply for that item will also be increased and vice-versa.
Price
The amount at which a good or service will be sold in a market.
Supply
Whole fields of tomatoes were destroyed in a fire. What does this affect? Supply or Demand?