Unit 2 Vocab

________________ is the willingness and ability of a producer to produce a good/service at all price points.

• quantity supplied

• quantity demanded

• supply

• demand

________________ is consumers willingness and ability to purchase a good at all price points.

• demand

• supply

• quantity demanded

• quantity supplied

__________________ is the point where quantity supplied and quantity demanded are equal.

• supply

• demand

• equilibrium

• elasticity

_____________________ is a situation in which quantity demanded is greater than quantity supplied, price is below equilibrium

• shortage

• surplus

• demand

• supply

_____________________ is a situation in which quantity demanded is less than quantity supplied

, price is above equilibrium

• shortage

• surplus

• price

• quantity

_____________________ is the minimum price that can be charged for a good/service, set by the government, causes a surplus normally.

• price ceiling

• price floor

• shortage

• surplus

_____________________ is the maximum price that can be charged for a good/service, set by the government, causes a shortage

• price ceiling

• price floor

• surplus

• shortage