| A | B |
|---|
| consumers | people who buy goods and services |
| producer | person or business that provides goods and services |
| demand | amount of a good or service that consumers are willing and able to buy over a range of prices |
| supply | amount of a good or service that producers are willing and able to sell over a range of prices |
| market | place where buyers and sellers of the same good or service come together |
| competition | struggle among sellers to attract buyers |
| equilibrium price | price set for a good or service in the marketplace, where demand and supply are perfectly balanced |
| surplus | situation in which the amount of a good or service supplied by producers is greater than the amount wanted by consumers |
| shortage | situation in which the supply of the good or service available is less than the demand for it |
| adapt | to change in response to new circumstances |
| interaction | effect of two or more things on each other |
| set their own prices, helps prevent production of too many or too few goods and services | 2 reasons a market economy is considered efficient |
