Unit 2 Vocab

The willingness and ability of a producer to produce a good/service at all price points

• quantity supplied

• quantity demanded

• supply

• demand

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

• demand

• supply

• quantity demanded

• quantity supplied

point where QS and QD are equal

• supply

• demand

• equilibrium

• elasticity

situation in which QD is greater than QS, price is below equilibrium

• shortage

• surplus

• demand

• supply

situation in which QD is less than QS, price is above equilibrium

• shortage

• surplus

• price

• quantity

measurement of how responsive consumers/producers are to a change in price

• elasticity

• supply

• demand

• surplus

minimum price that can be charged for a good/service, set by the government, casues a surplus normally

• price ceiling

• price floor

• shortage

• surplus

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

• price ceiling

• price floor

• surplus

• shortage

factor that causes a change in supply or demand

• determinant

• elasticity

• surplus

• shortage