| A | B |
|---|
| supply | the quantity of a good or service that producers are willing and able to sell at a specified price and time |
| technology | sometimes this eliminates the supply of products because of advancements |
| demand is low | what happens when price is high |
| law of supply | when price increases quantity offered increases |
| buyers market | low P low D high S |
| sellers market | high P high D low S |
| elasticity | indication of how changes in price affect S and D |
| necessity | most likely to have inelastic demand |
| increased sales revenue | increasing price will reslut in this only if inelastic |
| luxury | likely to have an elastic demand |
| elastic demand | when a chnage in price brings about a major change in S or D |
| utility | factor MOST LIKELY to affect demand |
| buying power | determines whether consumes can buy goods or services |
| standard of living | demand influence on the quality of life |
| supply=demand | what businesses in a private enterprise economy strive to do |
| cost of production | factor that may prevent businesses from entering the market |
| number of prodcuers | factor that affects supply when new businesses enter the market |
| natural disasters | factor like tornado that may affect supply |
| demand exists | when buyers have the ability AND willingness to purchase |
| government regulations | may cause supply to decrease because of laws |
| elastic | what demand will be for something that has substitutes or is a luxury |
| inelastic demand | demand that is unaffected by price |
| age | this of a consumer will probably affect utility to them for a product more than anything else |
| complementary products | these related goods typically affect the demand for each other |
| Direct proportion | what companies attempt to supply goods in relation to demand |
| not supply | what businesses might do if they expect prices to substantially increase in the future |
| demand | amount of goods and services consumers are willing anc able to buy at a specified time and price |
