Chapter 4 - The Market Forces of Supply and Demand

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15 Terms

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Auctioneers
________ maintain order and arrange all sales, while also finding a balanced price that 'll satisfy buyers and sellers.
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Shortage
________: a situation in which quantity demanded is greater than quantity supplied.
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equilibrium price
When there are an increase in demand, the ________ increases.
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surplus
A(n) ________ is sometimes described as an excess supply of a good.
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Substitutes
________: two goods for which an increase in the price of one leads to an increase in the demand for the other.
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Monopolies
________ are markets with one seller who sets a price.
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Complements
________: two goods for which an increase in the price of one leads to a decrease in the demand for the other.
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Supply schedule
________: a table that shows the relationship between the price of a good and the quantity supplied.
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Equilibrium
________: a situation in which the market price has reached the level at which quantity supplied equals quantity demanded.
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demand curve
The ________ can shift when the quantity being demanded at any given price alters.
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excess demand
A shortage is often referred to as ________.
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equilibrium of a price
The ________ is often called the market- clearing price.
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Price takers
________ determine the price that buyers and sellers base their market on.
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Ice cream sellers
________ offer a variety of products in different locations and they make sure to display the price of an ice cream cone.
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Surplus
________: a situation in which quantity supplied is greater than quantity demanded.