Supply & Demand Main Vocab - Kubik

Front

Demand

Back

The quantity of a good or service that consumers are willing and able to buy at various prices. As price decreases, quantity demanded increases.

Front

Law of Demand

Back

As price increases, quantity demanded decreases — and vice versa.

Front

Quantity Demanded

Back

A specific point on the demand curve that changes only when price changes (movement along the curve).

Front

Change in Demand

Back

When something other than price causes consumers to buy more or less. INSECT factors: Income, Number of Buyers, Substitutes, Expectations, Complements, Tastes.

Front

Supply

Back

The quantity of a good or service that producers are willing and able to sell at various prices. As price increases, quantity supplied increases.

Front

Law of Supply

Back

As price increases, producers are willing to produce and sell more; as price decreases, they produce less.

Front

Quantity Supplied

Back

A specific point on the supply curve that changes only when price changes (movement along the curve).

Front

Change in Supply

Back

When something other than price causes producers to change how much they produce. PENTT factors: Price of Resources, Expectations, Number of Sellers, Technology, Taxes or Subsidies.

Front

Equilibrium

Back

The point where supply and demand meet — determines market price and quantity.

Front

Surplus

Back

When quantity supplied > quantity demanded (too much product). Prices tend to fall until equilibrium is reached.