Economic 2

To rise and fall frequently between one level or thing and another.

➢ In certain regions, temperatures fluctuate intensively throughout the day.

• Surplus

• Fluctuate

• Shortage

• Voluntary

Something done or brought about by free choice.

➢ Buying a certain brand of products, choosing a condo or

house, or choosing an university.

• Fluctuate

• voluntary

• Surplus

• shortage

A simplified description of reality, designed to yield hypotheses about economic behavior that can be tested.

• Equilibrium quantity

• Equilibrium price

• Economic model

The price where quantity supplied equals quantity demanded.

• Economic model

• Equilibrium Price

• Equilibrium quantity

The quantity of output supplied that is exactly equal to the quantity demanded at the equilibrium price.

• economic model

• Equilibrium price

• Equilibrium quantity

A situation in which quantity supplied is greater than quantity demanded at a given price.

• Fluctuate

• Voluntary

• Surplus

• Shortage

A situation in which quantity supplied is less than quantity demanded at a given price.

• Fluctuate

• Voluntary

• Surplus

• Shortage

Buyers who want to find bargains and sellers who hope for large profits both play a part in_______

• determining prices.

• price compromise

Because transactions in a market economy are voluntary, the ___________ that settles the differences between buyers and sellers must benefit both parties.

• determining prices.

• price compromise

When used together, supply and demand curves intersect at the __________, where the quantity of products supplied equals the quantity demanded.

• Economic model

• Equilibrium price

• Equilibrium quantity