Supply & Demand Review

The part of economic theory that deals with behavior and decision making by individual units, such as people and firms

• Supply

• Microeconomics

• Demand

• Quantity Demanded

Includes desire and also the willingness and ability to buy the product.

• Microeconomics

• Supply

• Quantity Supplied

• Demand

Shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time.

• Demand Schedule

• Law of Supply

• Law of Demand

• Supply Schedule

The extra usefulness or additional satisfaction a person gets from acquiring or using one more unit of a product

• Utility

• Law of Supply

• Marginal Utility

• Incentive

A motivating influence that causes consumers to act.

• Marginal Utility

• Demand Curve

• Utility

• Incentive

States that the quantity demanded varies inversely with its price

• Supply Curve

• Demand Curve

• Law of Demand

• Law of Supply

Shows the quantity demanded at each price that might prevail in the market

• Supply Curve

• Demand Curve

• Law of Supply

• Law of Demand

The extra satisfaction we get from using additional quantities of the product begins to decline.

• Demand Curve

• Marginal Utility

• Diminishing Marginal Utility

• Supply Curve

The change in quantity demanded because of a shift in relative prices.

• Substitution Effect

• Marginal Utility

• Income Effect

• Diminishing Utility

The change in quantity demanded because of a change in price that alters consumers’ income

• Diminishing Marginal Utility

• Marginal Utility

• Substitution Effect

• Income Effect