Micro (2)

Inverse relationship between price and quantity demanded. Higher price, lower demand; lower price, higher demand.

How much one person wants to buy a product at different prices.

Total demand from all individuals for a product.

Graph showing how price affects quantity demanded (other things are the same).

Increased quantity demanded when price falls.

Things that shift the demand curve (e.g., income, prices of related goods, tastes).

Difference between what a consumer is willing to pay and what they actually pay.

Difference between the price a producer receives and the lowest price they were willing to accept.

Where supply and demand balance; price and quantity stay the same

When a price falls, people buy more of it and less of similar/competing products

Higher price, higher quantity supplied; lower price, lower quantity supplied.

Graph showing how price affects quantity supplied.

Things that shift the supply curve (e.g., costs of inputs, technology, expectations).

Maximum legal price, often below equilibrium leading to shortages.

When supply and demand are not balanced.

How supply and demand determine prices.

Resources used to produce goods/services people value most.

Goods where demand increases with higher income.

Goods where demand decreases with higher income.

More units consumed, less satisfaction you get from each extra one.

Satisfaction or usefulness gained from consuming a good or service.