Demand and Supply

Front

What happens to quantity supplied as price rises?

Back

It goes up.

Front

What does the law of supply and demand state?

Back

The price of a good or service is determined by the interaction of its supply and demand.

Front

What does the supply curve represent?

Back

Supply.

Front

What determines price in a market?

Back

The interaction of supply and demand.

Front

Define market equilibrium.

Back

The point at which quantity demanded equals quantity supplied.

Front

What is demand?

Back

The quantity of a good or service that consumers are willing and able to purchase at various prices.

Front

What is supply?

Back

The quantity of a good or service that producers are willing and able to sell at various prices.

Front

What is a shortage?

Back

A situation where quantity demanded exceeds quantity supplied.

Front

What is a surplus?

Back

A situation where quantity supplied exceeds quantity demanded.

Front

What is the equilibrium price?

Back

The price at which quantity demanded equals quantity supplied.