Microeconomics

A diagram that traces the flow of resources, products, income, and revenue among economic decision makers

• profit and loss statement
• economic model
• resource allocation chart
• circular flow diagram

a person or group of people living in the same residence

• Family
• Community
• Neighborhood
• Household

the institutions that organize the production of goods and services

• Government agencies
• Firms or businesses
• Non-profit organizations
• Households

the market in which households purchase the goods and services that firms produce

• Resource market
• Product market
• Financial market
• Labor market

a market in which households sell and firms buy resources or the services of resources

• Product market
• Factor market
• Retail market
• Consumer market

producers offer more of a good as its price increases and less as its price falls

• Law of demand
• Market equilibrium
• Consumer surplus
• Law of supply

consumers buy more of a good when its price decreases and less when its price increases

• Price Elasticity
• Law of Demand
• Law of Supply
• Market Equilibrium

the price that balances quantity supplied and quantity demanded

• Equilibrium price
• Supply price
• Demand price
• Market price

A legal minimum on the price at which a good can be sold

• Price ceiling
• Market equilibrium
• Supply limit
• Price floor

A legal maximum on the price at which a good can be sold

• Price ceiling
• Market equilibrium
• Price floor
• Demand curve