Economic Terms
| A | B |
|---|---|
| Supply | How much of a good or service a producer is willing and able to produce at different prices. |
| Demand | An individual’s need or desire for a good or service at a given price. |
| Law of Demand | As prices fall for a particular good or service, the demand for that item will increase and vice-versa. |
What term refers to the amount of a good or service that a producer is willing to sell at each particular price?
When economists talk about supply, they mean the amount of some good or service a producer is willing to supply at each price. Price is what the producer receives for selling one unit of a good or service.
Which is the best definition of demand and supply?
The amount of a good or service that consumer is willing and able to buy at various possible prices during a given time period Quantity Demanded Amount of a good or service that consumer is willing and able to buy at each particular price during a give time period Law of Demand
What happens when the price of a good or service rises?
What a buyer pays for a unit of the specific good or service is called price. The total number of units purchased at that price is called the quantity demanded. A rise in price of a good or service almost always decreases the quantity demanded of that good or service. Conversely, a fall in price will increase the quantity demanded.
Which is the only price where consumers and producers agree?
The equilibrium price is the only price where the plans of consumers and the plans of producers agree—that is, where the amount of the product consumers want to buy (quantity demanded) is equal to the amount producers want to sell (quantity supplied). This common quantity is called the equilibrium quantity.
Which is the best definition of quantity in economics?
Supply The amount of a good or service that producers are able and willing to sell at prices during a specified time. Market The process of freely exchanging goods and services between buyers and sellers. Quantity Demanded The amount of a good or service that a consumer is willing and able to purchase at a specific price.
