| A | B |
|---|
| Buyer’s market | The best time for consumers to buy; characterized by large supply, small demand, and low prices |
| Consumers | People who use goods and services to satisfy their wants |
| Demand | The quantity of a good or service that buyers are ready to buy at a given price at a particular time |
| Demand price | The maximum price buyers are willing and able to pay for a product |
| Equilibrium price | The point at which the quantity of a product that buyers want to buy is equal to the quantity that sellers are willing to sell at a certain price; the price equal to both the demand price and the supply price; also known as market-clearing price |
| Excess demand | The situation that exists when demand is greater than supply |
| Excess supply | The situation that exists when supply is greater than demand |
| Incentives | A function of relative prices that encourages producers to change and reallocate their resources; motivators |
