| A | B |
|---|
| Market Economy | Buyers and Sellers are free to choose what and how to make and sell |
| Price | The amount agreed on for the exchange of goods or services |
| Market | Where buyers and sellers come together |
| Demand | The quantity of items consumers want to purchase |
| Supply | The quantity of items sellers have available |
| Law of Demand | As price goes up, people will want less |
| Law of Supply | as price goes up, sellers will want to make more available |
| Suplus | Supply > Demand : Too Much |
| Shortage | Supply < Demand: Too Little |
| Equilibrium Price | The price where buyers and sellers agree |
| Wants | Luxury items - Make life easier |
| Needs | Necessary items for survival |
