| A | B |
|---|
| Complementary Good | two goods for which a change in the demand for one causes a similar change in demand for the other |
| Demand | The quantities of a good or service that consumers are willing and able to buy at various prices |
| Fixed Cost | A cost that does not change in the level of output |
| Law of Demand | Consumers will buy less at higher prices and more at lower prices |
| Law of Supply | Producers are willing to supply more at higher prices and less at lower prices |
| Market Clearing Price | The price at which the quantity supplied and demanded are equal |
| Opportunity Cost | value of best alternative use of a resource given up when a choice is made |
| Price | What people pay when they but a good or service or what supplier receive when they sell a good or service |
| Profit | the amount of money left over after all the production costs have been paid |
| Revenue | Income or payments for goods or services received by producers |
| Substitutes | Two or more goods or services that can satisfy the same want. |
| Supply | the quantites of a good or service producers are willing to supply at various prices. |
| Trade offs | exchange one thing for another |
| Variable Costs | A cost that varies with a change in the level of output. |
