The desire to have some good or service and the ability to pay for it.
LAW OF DEMAND
States that when the price of a good or service goes down, the quantity demand increases, and when the prices go up, the quantity demand falls.
The willingness and ability of a producer to produce and sell a product.
LAW OF SUPPLY
States that, producers are willing to sell more of a good or service at a higher price than they are at a lower price.
Expenses that, business owners incur no matter how much they produce.
Business costs that vary with thelevel of production output.
The sum of fixed and variable costs.
The additional cost of producing or using one more unit of a good
The value of something that is given up by choosing one alternativeover another.Profit: Thefinancial gain a seller makes from a business transaction: the money left overafter the costs of producing a product are subtracted from the income gained byselling that product.
The financial gain a seller makes from a business transaction; the money left overafter the costs of producing a product are subtracted from the income gained byselling that product.
The money made for each additional unit sold.
The income a business received from selling it's products.
A situation in which total costs and totalrevenues are the same.
A market structure that lacks one or more ofthe conditions needed for perfect competition.
The ideal model of a market economy; the market structure in which none of the many well-informed and independent sellers or buyers have control over the price of a standardized good or service.
A marketstructure in which only a few sellers offer a similar product.
A market situation in which the costs ofproduction are lowest when only one firm supplies a product or service.
A market structure in which many sellers offersimilar, but not standardized, products to consumers.
WHAT IS ELASTICITY OF DEMAND?
A measure of how responsive consumers are to price changes in the marketplace.
WHAT IS ELASTICITY OF SUPPLY?
A measure of how responsive producers are to price changes in the marketplace.
Referring to a situation in which a change in price, either up or down, leads to a relatively larger change in the quantity demand or the quantity supplied.