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Microeconomics · College

Microeconomics: Supply and Demand Fundamentals

Core supply and demand concepts, shifts versus movements, and market equilibrium. Front: the term or concept. Back: a plain-language definition.

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Supply
The quantity of a good that producers are willing and able to offer at various prices
Demand
The quantity of a good that consumers are willing and able to buy at various prices
Quantity demanded
The amount of a good consumers want to buy at a specific price
Quantity supplied
The amount of a good producers want to sell at a specific price
Law of demand
As price increases, quantity demanded decreases, and vice versa
Law of supply
As price increases, quantity supplied increases, and vice versa
Market demand
The sum of all individual demands for a good by all consumers in a market
Market supply
The sum of all individual supplies of a good by all producers in a market
Market equilibrium
The point where the quantity demanded equals the quantity supplied
Equilibrium price
The price at which quantity demanded equals quantity supplied
Equilibrium quantity
The amount of a good bought and sold at the equilibrium price
Shortage
A situation where quantity demanded exceeds quantity supplied at a given price
Surplus
A situation where quantity supplied exceeds quantity demanded at a given price
Movement along the demand curve
A change in quantity demanded caused by a change in the good's own price
Shift of the demand curve
A change in overall demand caused by factors other than the good's own price

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