Chapter 4 - Demand, Supply, and Markets

disequilibrium

condition that exists in a market when the plans of buyers do not match those of sellers; a temporary mismatch between quantity supplied and quantity demanded as the market seeks equilibrium.

particular commodities

Prices communicate to existing and future suppliers about the benefits of manufacturing ________.

commercial pressures

Change is not compelled by ________.

typical good

Because pizza is a(n) ________, its demand curve moves to the right as money income rises.

Consumers

________ have a variety of methods for attempting to satisfy any given need.

Consumers

________ have a variety of methods for attempting to satisfy any given need.

Substitution effect

When the price of a good falls, that good becomes cheaper compared to other goods so consumers tend to substitute that good for other goods