Supply and Demand

The total amount of a good or service available for purchase at any given price is known as __________.

Supply.

The desire for a good or service combined with the ability to purchase it is referred to as __________.

Demand.

According to the Law of Demand, an increase in price results in a __________ in the quantity demanded.

decrease.

The point where the quantity of goods supplied is equal to the quantity of goods demanded is called __________.

Equilibrium.

If the price elasticity of demand is less than 1, it is termed __________ demand, indicating little effect on quantity demanded with price changes.

Inelastic.