Unit 2 Vocabulary Flashcards

(4 cards)

1
Q

Law of Supply

A

tendency of suppliers to offer more of a good at higher price.

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2
Q

Law of Demand

A

economic law that states that consumers buy more of a good when it’s price decreases and less when it’s price increases.

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3
Q

Market Clearing Price (equilibrium)

A

the point at which quantity demanded and quantity supplied are equal.

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4
Q

Determinants of Supply

A

factors other than price that causes producers to make and sell more or less of a good/service.

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