Microeconomics: Demand, Supply, and Equilibrium

The Law of Demand states that as the price of a good increases, the quantity demanded decreases, ceteris paribus.

A Demand Curve is a graphical representation of the relationship between the price of a good and the quantity demanded.

The factors that affect demand are the price of the good, income of consumers, prices of related goods, tastes and preferences, and population and demographics.

<p>The Law of Supply states that as the price of a good increases, the quantity supplied also increases, ceteris paribus.</p> Signup and view all the answers

<p>A Supply Curve is a graphical representation of the relationship between the price of a good and the quantity supplied.</p> Signup and view all the answers

<p>The factors that affect supply are the price of the good, production costs, technology and productivity, expectations of future prices, and government policies and regulations.</p> Signup and view all the answers

<p>Direct Demand is the demand for a good for its own sake, while Derived Demand is the demand for a good because of its use in producing another good.</p> Signup and view all the answers

<p>The Equilibrium Price is the price at which the quantity demanded equals the quantity supplied.</p> Signup and view all the answers

<p>The Equilibrium Quantity is the quantity traded at the equilibrium price.</p> Signup and view all the answers

<p>Disequilibrium is a situation where the quantity demanded does not equal the quantity supplied.</p> Signup and view all the answers