Econ Term Paper: Supply and Demand

Econ Term Paper: Supply and Demand

  • Submitted By: tortor
  • Date Submitted: 05/24/2010 7:05 AM
  • Category: English
  • Words: 277
  • Page: 2
  • Views: 720

Supply shows the willingness and ability to sell a good or service at any given time. Demand is the willingness and ability to purchase a good or service at any given price. Law of Supply states as price increases, quantity of supply also increases, as price decreases quantity of supply decreases. Law of Demand states as price increases quantity demand decreases, as price decreases quantity demand increases. Supply Schedule shows the various combinations of a good or service that sellers are willing or able to sell at any given price in a chart. Demand Schedule shows the various combinations of a good or service that buyers are willing and able to purchase at any given price in a chart. Supply Curve shows the various combinations of a good or service that sellers are willing or able to sell at any given price in a graph. Demand Curve shows the various combinations of a good or service that buyers are willing and able to purchase at any given price in a graph. Equilibrium is the point where the supply and demand curves meet, also where quantity supply is equal to what quantity demanded. Market Price is the price of most transactions. Quantity Supply is the amount producers are willing and able to produce at a given price. Quantity Demanded is the amount consumers are willing and able to consume at any given price. Price Ceiling is where it is illegal to buy or sell above the given. Surplus is an amount that is more than needed. Disequilibrium describes any price are quantity not an equilibrium, one quantity supplied is not equal to quantity demanded in a market.

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