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law of demand

how much people are willing and able to buy at a particular price

law of supply

deals with the dcisions made by manufacturers and merchants.

resources

a source of supply, support, or aid, especially one that can be readily drawn readily drawn up on when needed.

equilibrium price

the price at which quantity demanded by consumers equals the quantity supplied by producers.

competition

producers battling over who can make the most profit, leads to innovation and better products.

consumer

people who buy goods and services to other’s

producer

someone who makes goods or offers services to others.

opportunity

value of whatever you give up when you make a decision.

scarcity

when resources are limited or not enough for everyone.

market economy

producers are free to decide what to produce, and consumers are free to buy whatever they need and want.

command economy

the government decides what to produce, how much will be produced and how much goods and services will cost.

traditional economy

what to produce how much will be produced and who gets what are answered by traditions and customs. oldest form of an economy.