economics

Market

Any arrangement where buyers and sellers exchange goods/services

goods

Tangible items you can touch/own

services

Intangible actions provided for others

Consumer Sovereignty

Consumers decide what gets produced via their spending — businesses only make what people will buy.

demmand

The quantity of a good/service consumers are willing and able to buy at every possible price.

quantity demmanded

The specific amount bought at one particular price.

law of demmand

Price up, demand down; price down, demand up.

demmand curve

Downward-sloping line showing the law of demand (

non price factors that shift demmand

price of the good itself, income levels, exceptions of the consumers, taste and prefences number of consumers

supply

refers to producers willingness and ability to sell a good or service

Quantity Supplied

The specific amount sold at one particular price.

Law of Supply

Higher price → more supplied; lower price → less supplied.

supply curve

Upward-sloping line showing the law of supply.

non price factors that shift supply

price of the good, cost of production, exepactions of producers, technology, number of producers, government.

market quilibrium

occurs where the demand and supply curves intersect

equilibrium price

the market price where quantity demanded equals quantity supplied

equilibrium quantity

the quantity bought and sold at the equiblium price

shortage

quantity demanded> quantity supplied

surplus

quantity supplied > quantity demanded

price change

movement along the curve

no price factor

shift of the curve