Supply and Demand Vocab

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Law of Demand

Back

Suggests when prices increase, quantity demanded decreases; when prices decrease, quantity demanded increases.

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Quantity Demanded

Back

The amount of a good or service consumers are willing and able to buy at different prices during a given period of time.

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Demand Curve

Back

A graph that shows the inverse relationship between price and quantity demanded.

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Demand Schedule

Back

Shows the quantity demanded at different prices and is used to create a demand curve.

Front

Price

Back

The amount consumers pay when buying a good or service.

Front

Change in Demand

Back

A change that increases (or decreases) the quantity demanded at every price.

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Substitutes

Back

Two goods for which an increase in the price of one leads to an increase in the demand for the other.

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Determinants of Demand

Back

Factors that increase or decrease demand: income, expectations, prices of related goods, population, tastes/preferences.

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Complements

Back

Two goods for which the increase in the price of one leads to a decrease in the demand for the other.

Front

Law of Supply

Back

Suggests when prices increase, quantity supplied increases; when prices decrease, quantity supplied decreases.