| A | B |
|---|
| Market Economy | Basic economic decisions are based on the actions of buyers and sellers in the market. |
| Price | The amount of money given or asked for when goods or services are bought or sold. |
| Market | Any place where individuals buy and sell goods and services. |
| Demand | The amount of goods or services consumers are willing and able to buy. |
| Law of Demand | Consumers will buy less of an item at a higer price than at a lower price. |
| Supply | Amount of goods or services that producers will provide. |
| Law of Supply | The higher the price the more producers will supply and the lower the price the less producers will supply. |
| Surplus | An over supply of a product. Producers are producing more of a product than consumers will buy. |
| Shortage | An under supply of a product. Consumers are demanding more of a product than producers are producing. |
| Equilibrium Price | The price at which the amount supplied and the amount demanded come together. |
