Economics

The desire to have some good or service and the ability to pay for it.

States that when the price of a good or service goes down, the quantity demand increases, and when the prices go up, the quantity demand falls.

The willingness and ability of a producer to produce and sell a product.

States that, producers are willing to sell more of a good or service at a higher price than they are at a lower price.

Expenses that, business owners incur no matter how much they produce.

Business costs that vary with thelevel of production output.

The sum of fixed and variable costs.

• The additional cost of producing or using one more unit of a good
• or service.

The value of something that is given up by choosing one alternativeover another.Profit: Thefinancial gain a seller makes from a business transaction: the money left overafter the costs of producing a product are subtracted from the income gained byselling that product.

The financial gain a seller makes from a business transaction; the money left overafter the costs of producing a product are subtracted from the income gained byselling that product.

The money made for each additional unit sold.

The income a business received from selling it's products.

A situation in which total costs and totalrevenues are the same.

A market structure that lacks one or more ofthe conditions needed for perfect competition.

The ideal model of a market economy; the market structure in which none of the many well-informed and independent sellers or buyers have control over the price of a standardized good or service.

A marketstructure in which only a few sellers offer a similar product.

A market situation in which the costs ofproduction are lowest when only one firm supplies a product or service.

A market structure in which many sellers offersimilar, but not standardized, products to consumers.

A measure of how responsive consumers are to price changes in the marketplace.

A measure of how responsive producers are to price changes in the marketplace.

Referring to a situation in which a change in price, either up or down, leads to a relatively larger change in the quantity demand or the quantity supplied.