| A | B |
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| Law of Demand | as the price of a good or service increases, consumer demand for the good or service deceases and vice versa |
| Supply Curve | an upward sloping line that graphically shows the quantities of a good supplied at each price |
| Equilibrium Price | the price at which the quantity of a product offered is equal to the quantity of the product in demand |
| Market Price | the price at which a commodity, security, or service is selling in the open market |
| Supply Schedule | A table or listing showing the exact quantities of a single type of good (or service) that potential sellers would offer to sell at each of a number of varying prices during some particular time period. |
| Demand Schedule | A table or listing showing the number of units of a single type of good (or service) that potential purchasers would offer to buy at each of a number of varying prices during some particular time period. |
| Demand Curve | downward sloping line that graphically show the quantities of a good demanded at each price |
| Complimentary good | goods used that increase the use of other goods |
| Substitute Product | goods that can replace other goods |
| Supply-side Economics | belief that tax cuts will stimulate the economy with a bigger money supply |
| Trickle-down effect | idea that investing money in companies & giving companies taxbreaks is the best way to stimulate the economy |
| Personal income | total amount of income going to a person before individual taxes are paid |
| Disposable Income | money income left after all taxes are paid |
| Discretionary Income | Individual income that is not allocated for necessary items such as food and shelter |
| Surplus | when quantity supplied is greater than quantity demanded |
| Shortage | when quantity demanded is greater than quantity supplied |
| Minimum Wage | lowest legal wage that can be paid to workers (5.10) |
| Interest rates | rate of payments made for the use of borrowed money |
| Wage and Price Controls | actions to keep wages and prices at certain levels |
| Inflation | a sustained increase in the general level of prices of goods |
| Deflation | a decrease in the general level of prices of goods |
| Law of Supply | as the price of a good or services, the quantity of goods or services offered by suppliers increases, and vice versa |
