| A | B |
|---|
| Demand | The quantity of a good orservice that buyers are willing and able to buy at all possible prices during a period of time. |
| Demand curve | A graph used to show the data from a demand schedule.,  |
| Demand curve - vertical axis | shows the price |
| Demand curve - horizontal axis | shows the quantity demanded |
| Demand schedule | A table showing the quantity demanded of a good or service |
| Law of demand | As the price of a good or service rises (or falls), the quantity of that good or service that consumers are willing and able to buy during a certain period of time falls (or rises) |
| Wants | Desires that can be satisfied by consuming or using a good or service |
| Supply | The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given time |
| Law of supply | Producers will produce more when they can sell at a high price and less at a low price |
| Equilibrium price | The price at which the quantity demanded by buyers = the quantity supplied by sellers |
| Another term for Equilibrium price | Market-clearing price |
| Equilibrium quantity | The quantity demanded and the qty supplied at the equilibrium price |
| Price | The amount of money that people pay when they buy a good or service |
Shortage,  | Results when the quantity demanded for a product exceeds the quantity supplied, |
Surplus,  | Results when the quantity supplied of a product exceeds the quantity demanded |
| Determinants of demand | Factors other than price of a good or service that change (shift) the demand schedule |
| Determinants of supply | Factors other than price of a good or service that change (shift) the supply schedule |
| Elasticity of demand | The percentage change in quantity demanded as a result of the percentage change in demand price |
| Examples of determinants of demand are | income, number of consumers, preferences and prices of related goods |
| Examples of determinants of supply which cause a change are: | number of producers, production costs, technology and productivity |
| Elasticity of supply | Percentage change in qty supplied as a result of the pct change in demand price |
| Price ceilings | sets the highest price that can be charged |
| Price floor | sets the lowest price at which one can buy a good or service |
