economics: section 4.1

demand

the amount of a good that is bought at a certain price under certain conditions; the relationship between a good’s price and the amount that people are willing and able to buy

• willing

• able

fill in the blank

a demand is the relationship between a good’s price and the amount that people are __________ and _______ to pay

supply

quantity of a good at a certain price under certain conditions; relationship between a good’s price and the amount a producer is willing to supply for a consumer

value in use

value gained from the direct benefit of using a good; this value varies from person to person

the farmer and the market

what is an example of “value in use”?

1. lumber

2. molasses

3. value in use

fill in the blank

with “the farmer and the market”,

1. A farmer has a large supply of ______ 

2. A merchant has a large supply of _________

For each, their good has little _______ ___ ______

opposite

fill in the blank

with the value in use, if they exchange, the _________ good provides more value for them

value in exchange

value gained exchanging for another good

trading value

what’s another name for value in exchange?

bartering

fill in the blank

with value in exchange, most of the value of these goods is accomplished through ________

price

the amount of money an individual will pay for an item; value in exchange

market price

the price at which a good can be sold in a market; AKA “store price” of a good

market

fill in the blank

market price is the price at which a good can be sold in a _______; AKA “store price” of a good

• needs

• demands

fill in the blank

price varies based on day-to-day ______ and _________