| A | B |
|---|
| law of supply | as prices go up, seller supply will go up and visa versa |
| law of demand | as prices go up, consumer demand goes down and visa versa |
| equilibrium price | the price at which all that is supplied will be demanded;supply equals demand;also caled the price that clears the market |
| surplus | the amount of supply which there is no demand; extra |
| shortage | the amount of supply for which there is demand that can not be filled; not enough |
| anti-trust | laws that stop monopolies from forming or existing |
| monopoly | a business that controls all the selling of a good or service |
| competition | rivalry between companies for sales of similar goods or services |
| oligopoly | a business where there are just a few sellers of a good or service |
| natural monopoly | a business with only one seller; allowed because it would be too expensive ( or insufficient demand) for other sellers to compete |
