When supply and The point at which demand are in prices are agreement relatively stable, Equilibrium and the quantity of The point at which a goods or services company is producing an supplied is equal item at a price the to the quantity customer is willing to demanded pay A change in price causes a Inelastic relatively smaller When the does not change in the affect the demand quantity demanded Factors of production Anything that Inputs (land, labor, production increase capital, entrepreneurship) Demand curve that shows the quantities Market demanded by The total demand for a demand curve everyone who is product in the market interested in purchasing a product The supply that shows the quantities offered How much supply all Market supply at various prices companies in the country by all firms that have (not just one offer the product company) for sale in a given market Maximum You can’t charge more Price ceiling price that can be than a legal limit for charged for a something you sell product Lowest legal price You can’t charge less that can be Price floor than a legal limit for charged for a something you sell product Situation When the supply is less quantity supplied than the demand is less than Shortage quantity When you sell out of demanded at a something given price A product that can be Products used in bought instead of Substitutes of other another product products (ex Coke or Pepsi) – The amount of a How much stuff the Supply product that business has would be offered
Equilibrium The point at which prices are relatively stable, and the quantity of goods or services supplied is equal to the quantity demanded When supply and demand are in agreement The point at which a company is producing an item at a price the customer is willing to pay Inelastic A change in price causes a relatively smaller change in the quantity demanded When the does not affect the demand Inputs Factors of production (land, labor, capital, entrepreneurship) Anything that production increase Market demand curve Demand curve that shows the quantities demanded by everyone who is interested in purchasing a product The total demand for a product in the market Market supply The supply that shows the quantities offered at various prices by all firms that offer the product for sale in a given market How much supply all companies in the country have (not just one company) Price ceiling Maximum price that can be charged for a product You can’t charge more than a legal limit for something you sell Price floor Lowest legal price that can be charged for a product You can’t charge less than a legal limit for something you sell Shortage Situation quantity supplied is less than quantity demanded at a given price When the supply is less than the demand When you sell out of something Substitutes Products used in of other products A product that can be bought instead of another product (ex – Coke or Pepsi) Supply The amount of a product that would be offered How much stuff the business has
econ_key_terms.docx