Supply & Demand

Front

What is Supply?

Back

Supply refers to the amount of a good or service that producers are willing and able to sell at different prices.

Front

What is Demand?

Back

Demand is the quantity of a good or service that consumers are willing and able to purchase at different prices.

Front

What is Equilibrium Price?

Back

Equilibrium price is the price at which the quantity of a good supplied equals the quantity demanded.

Front

What happens during a Surplus?

Back

A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price.

Front

What happens during a Shortage?

Back

A shortage occurs when the quantity demanded exceeds the quantity supplied at a given price.

Front

What is the Law of Demand?

Back

The Law of Demand states that, all else being equal, as the price of a good decreases, the quantity demanded increases, and vice versa.

Front

What is the Law of Supply?

Back

The Law of Supply states that, all else being equal, as the price of a good increases, the quantity supplied increases, and vice versa.

Front

What is a Price Ceiling?

Back

A price ceiling is a maximum price set by the government that can be charged for a good or service.

Front

What is a Price Floor?

Back

A price floor is a minimum price set by the government that must be paid for a good or service.

Front

What is Market Equilibrium?

Back

Market equilibrium is the point where the supply and demand curves intersect, indicating a balance in the market.