Supply and Demand
Supply Definition
The amount of goods and services that producers will provide at various prices
The study of how society chooses to use resources to produce and distribute goods and services.
Economics
Don't need but wish you could have
Want
Found in rural undeveloped countries. (farming hunting gathering)
traditional economy
Anything that people can use to make or obtain what they want or need also known as factors of production
Resources
When supply is up price is?
Up
The shortage of economic resources
Scarcity
Something that is essential for survival
Needs
System in which central authority such as the state makes the key economic decisions
Command economy
raw materials found in nature that can be used to produce goods
natural resources
What does it mean when quantity supply is more than demanded
Surplus
Where buyers and sellers agree on a price
Equilibrium
What individuals desire
Private Wants
System in which economic decisions are made in marketplace according to laws of supply and demand
market economy
The knowledge, efforts, and skills people provide
Human resources
The amount or quantity of goods and services that consumers are willing to buy at various prices
Demand
What you give up in choice to buy something else
Opportunity cost
Wants shared by many people
Public wants
Combination of a market & command economy
Mixed economy.
Things such as buildings, materials, and equipment used to produce goods and services
Capital resources
If price is down demand goes up. If the price goes up demand is down
Law of Demand
Tasks that people or machines preform to provide goods
Services
Can be physically weighted and measured
Goods
What type of economy would this be if anyone can open a business and decide what they want to sell?
market economy
The initiative to improve goods and service or create new ones.
Entrepreneurial resources