1.2

1.2

market equilibrium

when market supply equals market demand

Ceiling

sets the maximum amount a seller can charge for a good or service

Floor

sets the minimum amount a seller can charge for a good or service

determinant

factors that influence or determine economic growth, development, or demand

Substitutes

products or services that can be used as alternatives to each other to satisfy a need or want

compliment

a good whose appeal increases with the popularity of its complement

Determinants

• popularity w/in sellers

• labor/employment

• change w/in the factors of production / resources

• natural disasters

• techonology

• government regulations

• expectations on supply

demand determinants

income, price, tastes and preferences, prices of related goods and services, and expectations

supply determinants

prices of inputs, technology, taxes and subsidies, price forecasts, and the quantity of sellers on the market