Vocab
Those who provide human resources, natural resources, and capital goods in order for production to take place.
What are resource owners?
Any circumstance under which buyers and sellers exchange goods or services for a price.
What is a market?
An individual or business who makes or provides goods and/or services.
What is a producer?
The amount of money paid for a good, service, or resource.
What is a price?
An individual who uses goods and services to satisfy their wants and needs.
What is consumer?
The maximum price buyers are willing and able to pay for a product.
What is demand price?
The best time to go buy items from the market because demand is low, supply is large and prices are low.
What is a buyers market?
The quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period.
What is supply?
The maximum price a business can charge for a product legally.
What is a price ceiling?
The amount of a good or service that buyers are ready to get at a given price at a particular time.
What is demand?
The minimum price producers are willing and able to receive for a product.
What is supply price?
Best time for businesses because demand is large, supply is small and prices are high.
What is a seller's market?
A situation that exists when large supply is followed by little demand.
What is excess supply?
The actual price that prevails in a market at any particular time.
A situation that exists when large demand is followed by little supply.
What is excess demand?
When you compare two prices and come up with a ratio.
What is relative price?
Occurs when the quantity of a product that buyers want to buy is equal to the quantity that sellers are willing to sell at a certain price.
What is a market-clearing price?
A function of relative prices that encourages producers to change and reallocate their resources.
What is an incentive?
When the government restricts minimum and/or maximum prices of certain products.
What is price controls?
The amount of satisfaction a consumer received from a good or service.
What is value?
The point at which the quantity of a product that buyers want to buy is equal to the quantity that sellers are willing to sell at a certain price; equal to both the demand price and the supply price.
What is equilibrium price?
Where changes in relative prices cause buyers to substitute the purchase of one product for another.
What is a substitution effect?
A function of relative prices that determines who gets the goods and services produced; determining how scarce resources will be distributed.
What is rationing?
A function of relative prices that is necessary for consumers, producers, and resource owners to make important economic decisions.
What is price information?
When an individual or business buy a good or service then exchange it for more than the buying price.
What is profit?