Ch. 4 Understanding the Market

Things that you must have in order to survive

• Needs

• Wants

• Goods

• Services

Things that a person thinks they must have in order to be satisfied

• Needs

• Wants

• Goods

• Services

The means through which goods and services are produced

• Demand

• Profit

• Economic Resources

• Fixed Costs

Difference between the revenues earned by a business and the costs of operating the business

• Variable Costs

• Marginal Cost

• Supply

• Profit

The quantity of a good or service a producer is willing to produce at different prices

• Supply

• Demand

• Equilibrium

• Economic Resource

The quantity of a good or service that consumers are willing to buy at a given price

• Supply

• Needs

• Demand

• Marginal Benefit

Point at which the supply and demand curves meet

• Fixed Costs

• Demand

• Equilibrium Point

• Profit

Costs that must be paid even if there are no sales

• Variable Cost

• Marginal Benefit

• Fixed Cost

• Marginal Cost

Costs that are directly tied to the number of items sold/usage

• Marginal Benefit

• Variable Costs

• Marginal Costs

• Fixed Costs

Measures the advantages of producing one additional unit of a good or service

• Marginal Benefit

• Marginal Cost

• Equilibrium Point

• Supply