| A | B |
|---|
| equilibrium | thepoint at which quantity demanded and quantity supplied are equal, at the same price |
| excess supply | when quantity supplied is move than quantity demanded |
| price ceiling | a maximum price that can be legally charged for a good or service |
| excess demand | when quantity demanded is more than quantity supplied |
| price floor | a minimum price for a good or service |
| supply | the willingness and ability of a producer to produce goods during a specific time period at a given price |
| law of supply | as price increases quantity increases, as price decreases, quantity decreases |
| quantity supplied | the amount a supplier is willing and able to supply at a certain price |
| marginal | the cost of producing one more unit of each good |
| total | the combination of fixed and variable |
| variable | costs that rise or fall depending on the quantity produced |
| fixed | a cost that does not change, most fixed costs involve the production facility |
| non-price determinants of demand | population, availability of resource, expectation of price, technology, # of sellers, gov't regulation |
| non-price determinants of supply | availability of resource, technology, # of sellers, expectations of the future price, gov't regulation, labor |
