willingness and ability to purchase a good or service (at all prices)

willingness and ability to offer a good or service for sale (at all prices)

Voluntary exchange of goods and services between buyers and sellers.

All else held constant, as price for a good/service increases, the quantity demanded decreases.

The amount of goods or services a consumer is willing and able to purchase at one set price.

A factor affecting the demand for a good or service. Occurs when the price of an equal replacement changes.

DOWNWARD SLOPING LINE that shows quantity demanded at different prices on a graph

a change in price moves quantity to a different spot on the curve

The demand curve shifts moving the whole line to a different spot on the graph when some big change happens.

Increase in demand

Decrease in demand

Tastes/preferences, Tastes/preferences Income Related products - substitutes/complements Expectations Size of Market

Economic concept dealing with consumers or producers responsiveness to an increase or decrease in price of a product, in others words, HOW MUCH the quantity responds to price.

Situation in which the rise or fall in a product's price greatly affects the amount that people are willing to buy

Situation in which a product's price change has little impact on the quantity demanded by consumers

All else held constant, as the price of a good/service increases, the quantity supplied increases.

The amount of a good or service that a producer is willing and able to supply at a specific price

UPWARD sloping line that shows on a graph the quantities supplied at each possible price

The supply curve shifts moving the whole line to a different spot on the graph when some big change happens

Entering/Exiting of firms + expectations, Alternatives Taxes/subsidies Input costs Tech

The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy

Too much of a product at a price, occurs when the price is set too high

A legal maximum price that may be charged for a good or service

A legal minimum price below which a good or service may not be sold

When income increases, the demand for these types of items also increases.

When income increases, the demand for these types of items decreases.