Demand and Supply

The _________ of a good or service is the amount that consumers plan to (or are willing to) buy in a given period of time at a particular (relative) price.​

• Quantity demanded

• Quantity supplied.

The amount of a good or service that producers plan to (or are willing to) sell during a given time period at a particular price is called ________​

• Quantity demanded

• Quantity supplied.

The phrase “other things being equal” is sometimes abbreviated with the Latin phrase :

Law of Demand:

Other things remaining the same, the higher the price of a good,

• the smaller is the quantity demanded.​

• the bigger is the quantity demanded.​

Law of Demand:

Other things remaining the same, the lower the price of a good,

• the smaller is the quantity demanded.​

• the bigger is the quantity demanded.​

A demand schedule:

• It lists the quantities demanded at each different price when all the other influences on consumers’ planned purchases remain the same.​

• It is a graph of the demand schedule.​

A demand curve:

• It lists the quantities demanded at each different price when all the other influences on consumers’ planned purchases remain the same.​

• It is a graph of the demand schedule.​

If the price of the good rises:

• the quantity demanded rises

• the quantity demanded falls .​

• (a movement up along the demand curve)

• (a movement down along the demand curve).​

If the price of the good falls:

• the quantity demanded rises

• the quantity demanded falls .​

• (a movement up along the demand curve)

• (a movement down along the demand curve).​

A ________ is a good that can be used in place of another good.

• substitute

• complement