Unit 2 Vocabulary Flashcards
(4 cards)
1
Q
Law of Supply
A
tendency of suppliers to offer more of a good at higher price.
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.
3
Q
Market Clearing Price (equilibrium)
A
the point at which quantity demanded and quantity supplied are equal.
4
Q
Determinants of Supply
A
factors other than price that causes producers to make and sell more or less of a good/service.
