Demand - The quantity of a good or service that buyers are willing and able to buy at all possible prices during a certain time period., Law of Demand - As the price of a good increases, the quantity of that good demanded decreases., Supply - The quantity of a good or service that producers are willing and able to offer for sale at each possible price during a given time period., Law of Supply - As the price of a good or service rises, the quantity of the good or service also rises. Likewise, as the price of a good or service falls, the quantity of the good or service also falls., Equilibrium - The point at which the quantity supplied equals the quantity demanded. This establishes the market price., Shortage - When the quantity demanded is greater than the quantity supplied., Surplus - When the quantity supplied is greater than the quantity demanded.,

Supply and Demand Vocab 2

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