Chapter 4 - The Market Forces of Supply and Demand

Auctioneers

________ maintain order and arrange all sales, while also finding a balanced price that 'll satisfy buyers and sellers.

equilibrium price

When there are an increase in demand, the ________ increases.

Shortage

________: a situation in which quantity demanded is greater than quantity supplied.

Surplus

________: a situation in which quantity supplied is greater than quantity demanded.

Substitutes

________: two goods for which an increase in the price of one leads to an increase in the demand for the other.

Monopolies

________ are markets with one seller who sets a price.

Complements

________: two goods for which an increase in the price of one leads to a decrease in the demand for the other.

Normal

________ good: a good for which, other things being equal, an increase in income leads to an increase in demand.

Supply schedule

________: a table that shows the relationship between the price of a good and the quantity supplied.

Equilibrium

________: a situation in which the market price has reached the level at which quantity supplied equals quantity demanded.

demand curve

The ________ can shift when the quantity being demanded at any given price alters.

excess demand

A shortage is often referred to as ________.

equilibrium of a price

The ________ is often called the market- clearing price.

Ice cream sellers

________ offer a variety of products in different locations and they make sure to display the price of an ice cream cone.

Price takers

________ determine the price that buyers and sellers base their market on.

surplus

A(n) ________ is sometimes described as an excess supply of a good.