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