Demand And Supply

The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.

A graph used to show the data from a demand schedule. The vertical axis shows the price and the horizontal access shows the quantity demanded. A demand curve shows an inverse relationship - the curve slopes downward from left to right.

A table showing the quantity demanded of a good or service corresponding to a number of prices.

As the price of a good or service rises (or falls), the quantity of that good or service that people are willing and able to buy during a certain period of time falls (or rises); that is, price and quantity demanded are inversely related.

Desires that can be satisfied by consuming or using a good or service.

The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time.

Producers will produce more when they can sell at a high price and less at a low price; in other words, price and quantity supplied are directly related.

The price at which the quantity demanded by buyers equals the quantity supplied by sellers; also called the market-clearing price.

The quantity demanded and quantity supplied at the equilibrium or market-clearing price.

The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or a service.

The situation that results when the quantity demanded for a product exceeds the quantity supplied. Generally happens because the price of the product is below the market equilibrium price.

Factors other than the price of a good or service that change (shift) the demand schedule, causing consumers to buy more or less at every price. Factors include income, number of consumers, preferences and prices of related goods.