Econ Unit 2: Week 1

The different quantities of goods that consumers are willing and able to buy at different prices.

• Supply

• Law of supply

• Demand

• Law of demand

Describes the inverse relationship between price and quantity demanded.

• Supply

• Law of supply

• Demand

• Law of demand

If the price goes up for a product, consumers buy less of that product and more of another substitute.

• The income effect

• The substitute effect

• Law of diminishing marginal utility

• Law of demand

If the price goes down for a product, the purchasing power increases for consumers, allowing them to purchase more.

• The income effect

• The substitute effect

• Law of diminishing marginal utility

• Law of demand

The more you buy and use a good or product, satisfaction for that product declines.

• The income effect

• The substitute effect

• Law of diminishing marginal utility

• Law of demand

The different quantities of a good that sellers are willing and able to sell (produce) at different prices.

• Supply

• Law of supply

• Demand

• Law of demand

There is a direct (or positive) relationship between price and quantity supplied.

• Supply

• Law of supply

• Demand

• Law of demand

The point at which quantity supplied equals quantity demanded.

• Surplus

• Shortage

• Equilibrium

• Disequilibrium

The condition in which the quantity supplied of a good is greater than the quantity demanded.

• Surplus

• Shortage

• Equilibrium

• Disequilibrium

The condition in which the quantity demanded of a good is greater than the quantity supplied.

• Surplus

• Shortage

• Equilibrium

• Disequilibrium