Supply and Demand

Front

What is supply in a market?

Back

The quantity of a good or service that is produced.

Front

What is demand in a market?

Back

The quantity of a good or service that people want.

Front

How does the relationship between supply and demand affect price?

Back

It explains how much sellers ask and buyers pay for a good or service.

Front

What happens to supply when the price of a good is high?

Back

Sellers will supply more of a good or service.

Front

What happens to demand when the price of a good is low?

Back

Buyers want to buy more of a good or service.

Front

What do the vertical and horizontal axes represent in supply and demand graphs?

Back

The vertical axis represents price and the horizontal axis represents quantity.

Front

How is supply represented in a graph?

Back

As an upward sloping line.

Front

How is demand represented in a graph?

Back

As a downward sloping line.

Front

What are the lines that represent the path of supply and demand called?

Back

Curves.

Front

What is the equilibrium price?

Back

The price where the supply and demand curves meet, which sellers are willing to accept and buyers are willing to pay.