Supply, Demand, and Equilibrium

________- individual demand curves of all consumers in a market.

________ can limit quantity by requiring licenses to produce certain products.

many buyers and sellers for the same good or service

includes equilibrium price and quantity

table that shows how much of a certain good consumers are willing to buy at different prices

graphical representation of a demand schedule

the higher price of a good or service leads to less quantity of that good or service, all other things being equal

two goods that are used together

Beef and Potatoes)

shows quantity demanded and price for a single customer

combined quantity demanded of all consumers determined by the market price of a good

individual demand curves of all consumers in a market

table that shows how much of a good or service produced will affect prices

Ingredients, Oven, Labor, Utility, and Rent

Coke and BodyArmor)

Cow skin and beef)

a form of inefficiency where people expend money, effort, and time to cope with the shortcomings experienced by a price ceiling

sellers sell lower quality goods at a lower price

a market in which there are many buyers and many sellers for the same good or service

a graph of the relationship between the price of a good and the quantity demanded

a table that shows the relationship between the price of a good and the quantity demanded

actual amount consumers are willing and able to buy at a certain price

how much people want at every price point

higher price of a good or service leads to less quantity of that good or service, all other things being equal

a rightward shift of the demand curve

a leftward shift of the demand curve

acronym for properties that shift the demand curve

how people feel about a product

includes substitutes and compliments in consumption

goods that can be used in place of another good to satisfy similar needs or desires; increase in price of this leads to an increase in demand for "THE" product

goods that tend to be consumed together; a rise in price of this product leads to a decrease in demand for "THE" product

includes normal and inferior goods

goods that consumers demand more of when their incomes rise

a rise in income decreases the demand, mostly due to better, more expensive options

illustrates the relationship between quantity demanded and price for an individual consumer

the demand curve that shows the quantities demanded by everyone who is interested in purchasing the product

the individual demand curves of all consumers in that market

amount producers are willing to produce and sell

the amount of goods available

a table that shows the relationship between the price of a good and the quantity supplied

the price and quantity supplied are directly related

a downward shift in supply curve

an upward shift of the supply curve

factors that shift the supply curve

any good or service that is used to produce another good or service

includes substitutes and compliments in production

alternative products that producers COULD use their resources to make

goods that must be produced together

an economic condition where no individual would be better off with any alternative

the price that balances quantity supplied and quantity demanded

the quantity supplied and the quantity demanded at the equilibrium price

excess supply

excess demand

equilibrium price and quantity both rise

the equilibrium price decreases and the equilibrium quantity increases

when supply _____ and demand _____, price rises and quantity is ambiguous

when supply _____ and demand _____, price falls and quantity is ambiguous

when supply _____ and demand _____, quantity rises and price is ambiguous

when supply _____ and demand _____, quantity falls and price is ambiguous

the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it

the amount a seller is paid for a good minus the seller's cost of providing it