| A | B |
|---|
| barter | The exchange of goods and services without the use of money |
| double coincidence of wants | the situation that exists when A has what B wants and B has what A wants |
| demand | the amount of a product that people are willing and able to purchase at each possible price during a given period of time, ceterus peribus |
| quantity demanded | the amount of a product that people are willing to purchase at a specific price |
| law of demand | A P increases, QD decreases and vice versa, ceterus peribus |
| determinants of demand | factors other than price that influence demand. Changes in these shift the demand curve. |
| demand curve | graph of a demand schedule |
| demand schedule | table of prices and quantities demanded for a good or service |
| normal goods | goods for which demand increases as income increases |
| inferior goods | good for which demand decreases as income increases |
| substitute goods | goods that can be used in place of each other: as the price of one rises, demand for the other rises |
| complementary goods | goods that are used together: as the price of one rises, demand for the other falls |
| supply | the amount of a good or service that producers are willing and able to offer for sale at each possible price during a certain time period, ceterus peribus |
| quantity supplied | the amount sellers are willing and able to offer for sale at a given price in a given time period |
| law of supply | as price increases, quantity supplied increases, ceterus peribus |
| determinants of supply | factors other than the price of the good that influence supply. Changes in these cause the supply curve to shift. |
| supply schedule | table that shows prices and quantities supplied of a particular good or service |
| supply curve | graph of the supply schedule |
| productivity | the quantity of output per unit of resource |
| equilibrium | P and Q are equal at this point |
| disequilibrium | prices at which quantity demanded and quantity supplied are not the same at a particular price |
| surplus | the QS is greater than the QD at a particular price |
| shortage | the QD is greater than the QS at a particular price |
| price floor | situation in which the price is not allowed to fall past a certain level |
| price ceiling | situation in which the price is not allowed to rise beyond a certain level |
