a situation in which quantity demanded equals quantity supplied
variables that shift market supply, changes in:
price of resource
technology of production
seling price of production substitute
number of firms
expected future prices
law of supply
increases in price causes increases in the quantity supplied and vice versa, ceteris paribus
supply curve
a curve tha shows the relationship between the price of a product and the quantiy of the product supplied
supply schedule
a table that shows the relationship between the price of a product and the quantity of the product supplied
quantity supplied
the amount of a good or service that a firm is willing ad able to supply at a given price
variables that shift market demand, changes in:
income
price or desirability of related goods
tastes and preferences
populations and demographics
expected future prices
income effect
the change in the quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power
substitution effect
the change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods that are substitutes
law of demand
when the price of a product falls, the quantity demanded of the product will increase, and vice versa, ceteris paribus
market demand
the demand byall consumers of a given good
demand curve
curve that shows the relationship between the price of a product and the quantity of the product demanded
quantity demanded
amount of a good that a consumer is willing and able to purchase at a given price
demand schedule
a table showing the relationship between the price of the product and th quantity of the product demanded