Economics: Standard 2 - Demand

Law of Demand

States that when the price of a good or service goes down, quantity demanded increases, and when the prices go up, quantity demanded falls.

Demand Curve

A graph that shows a demand schedule, or how much of a good or service an individual is willing and able to purchase at each price.

Change in Demand

A situation in which a change in the marketplace prompts consumers to buy different amounts of a good or service at every price.

Change in Quantity Demand

A change in the amount of a product that consumers will buy because of a change in price.

Demand Schedule

A table that shows how much of a good or service an individual is willing and able to purchase at each price.

Elasticity of Demand

A measure of how responsive consumers are to price changes in the marketplace.

Supply

The willingness and ability of a producer to produce and sell a product.

Law of Supply

States that producers are willing to sell more of a good or service at a higher price than they are at a lower price.

Supply Curve

A graph that shows data from a supply schedule.

Change in Quantity Supplied

An increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price.

Change in Supply

A situation in which a change in the market place prompts producers to offer different amounts for sale at every price.

Input costs

The price of the resources needed to produce a good or service.

Excise tax

A tax on the production or sale of a specific good or service.

Regulation

A set of rules or laws designed to control business behavior.

Elasticity of Supply:

A measure of how responsive producers are to price changes in the marketplace.