| A | B |
|---|
| demand | refers to how much (quantity) of a product is desired by buyers |
| economics | the study of how individuals and societies make decisions about production and consumption of goods and services |
| entrepreneur | a person who uses their ideas and takes risks in order to create a new business |
| equilibrium | the price at which quantity demanded equals the quantity supplied |
| factors of production | the human, natural, and capital resources used to produce things we consume |
| goods | physical (tangible) items produced for sale to consumers |
| incentives | an action or reward that motivates someone to act a certain way |
| needs | things that you must have to survive |
| opportunity costs | the benefits you could have received by performing an alternative acton to the one you chose to do |
| price ceiling | the highest price that sellers may charge for a product - mandated by an agency or government |
| price floor | the lowest price that buyers must pay for a produce - mandaded by an agency or government |
| scarcity | a shortness of supply; not enough of something to satisfy everyone's wants and needs |
| services | activities (usually performed by others) to satisfy wants and needs |
| supply | the total amount the market is currently producing of a given item |
| wants | things you would like to have but can live without |
| elastic demand | when demand for a product is affected by price (usually due to substitutes or alternatives) |
| inelastic demand | price has little influence on demand (usually due to necessity) |
