Economics: Supply and Demand

Front

What is economics?

Back

Economics is the study of goods and services.

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What does supply mean?

Back

Supply is an amount of something available for sale.

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What does demand mean?

Back

Demand is the desire for a product or service, often reflected in how many people want to buy it.

Front

What happens when demand is low for a product?

Back

When demand is low, it means there are no buyers for it.

Front

What is a product?

Back

A product is something that is sold.

Front

Why do people pay for services?

Back

People pay for services if they find them useful.

Front

What is a good?

Back

A good is a physical item that can be bought or sold.

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What is a service?

Back

A service is an action or activity that one person does for another.

Front

What is the relationship between supply and demand?

Back

Supply and demand interact to determine the price of goods and services.

Front

What happens when supply exceeds demand?

Back

When supply exceeds demand, prices tend to fall.