Unit 2: Microeconomics

Consumers will buy more of a good when its price is lower and less when its price is higher.

• Law of Demand

• Law of Supply

• Price Floor

• Price Ceiling

Producers offer more of a good or service as its prices increases and less as its price falls.

• Law of Demand

• Law of Supply

• Price Floor

• Price Ceiling

The point at which the quantity demanded for a product or service is equal to the quantity supplied of that product or service.

• Equilibrium

• Price Stability

• Shortage

• Supply

A minimum price consumers are required to pay for a good or service.

• Price Ceiling

• Market Clearing Price

• Equilibrium

• Price Floor

A maximum price consumers are required to pay for a good or service.

• Price Ceiling

• Equilibrium

• Market Clearing Price

• Price Floor

A business owned and managed by a single individual.

• Partnership

• Corporation

• Sole Proprietorship

• Limited Partnership

A market in which a single seller dominates.

• Monopolistic Competition

• Monopoly

• Oligopoly

• Perfect Competition

A market structure in which a few large firms dominate a market.

• Oligopoly

• Monopoly

• Monopolistic Competition

• Perfect Competition

A market structure in which many companies sell products that are similar but not identical.

• Monopolistic Competition

• Oligopoly

• Monopoly

• Perfect Competition

A market structure in which a large number of firms all produce the same product and no single seller controls supply or prices.

• Monopoly

• Monopolistic Comeptition

• Oligopoly

• Perfect Competition