Unit:2 Vocab. List-Supply and Demand

Market Supply

• the total of all individual suppliers' products in a market at a particular time.

• the quantity of goods that consumers are willing to buy at a given price.

• the total amount of money spent by consumers in a market.

• the number of suppliers in a market at a specific time.

Rationing

• Allocating a limited supply of a good or resource among people who would like to have more than is available.

• Distributing unlimited resources to everyone equally.

• Increasing the production of goods to meet demand.

• Restricting access to goods based on income levels.

Shortage

• A situation in which quantity demanded is greater than quantity supplied.

• A situation where there is an excess of goods available.

• A condition where supply equals demand.

• A scenario where prices are set too high.

Market Demand

• the total of all individual demands of all consumers in a given market at a particular time.

• the average demand of a single consumer in a market.

• the demand for a product in a specific region only.

• the demand that fluctuates based on seasonal changes.

Price Effect

• the tendency of consumers to buy more of a product as its price decreases.

• the inclination of people to buy less of something at higher prices than they would buy at lower prices.

• the effect of price changes on the overall market demand.

• the relationship between price and consumer income.

Buying Power

• The ability to influence others in a financial context.

• The quantity of goods and services a person can buy with a given amount of money.

• The total amount of money a person has in their bank account.

• The rate at which money can be exchanged for goods and services.

Law of Demand

• A direct relationship between the quantity demanded and the price of a product.

• An inverse relationship between the quantity demanded and the price of a product.

• No relationship between the quantity demanded and the price of a product.

• A relationship that varies depending on consumer preferences.

Substitutes

• A type of good that is always more expensive than others.

• A good or service that can replace another good or service.

• A product that is only available in limited quantities.

• A service that cannot be replaced by any other service.

Supply

• Quantities of a good or service that producers are willing and able to provide at a particular time at various prices.

• The total amount of a product that consumers are willing to purchase at a given price.

• The amount of goods that are available for sale in a market at any given time.

• The relationship between the price of a good and the quantity demanded by consumers.

Complementary Goods

• Products that are often used together.

• Products that can replace each other.

• Products that are sold at a discount.

• Products that are used independently.