| A | B |
|---|
| scarcity | there is not enough of a product |
| price | value assigned to a product according to the forces of supply and demand for that product |
| law of supply | suppliers will supply more of a product as the price for that product increases |
| law of demand | buyers will demand more of a product as prices decreases |
| market price | point where the supply curve and the demand curve intersect, creating the value of a product |
| shortage | situation when demand is greater than the supply of a product |
| surplus | occurs when supply is greater tan demand-price usually decreases |
| diminishing utility | idea that a person's demand fr a product will rach a maximum no matter the price |
| diminishing return | idea that a supplier will reach a point when increased production will not increase profits |
| productivity | term for the amount of work produced in a given amount of time.-Increased productivity causes prices to decrease aand fights inflation. |
