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Market
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A group of buyers and sellers of a particular product
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Competitive Market
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One with many buyers and sellers, each has a negligible effect on price.
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Perfectly competitive market
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All goods exactly the same. Buyers and sellers so numerous that no one can effect market price.
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Quantity Demanded
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Of any good is the amount of the good that buyers are willing and able to purchase.
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Law of demand
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The claim that the quantity demanded of a good falls when the price of the good rises, other things equal.
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Demand Schedule
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A table that shows the relationship between the price of a good and the quantity demanded.
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Quantity Supplied
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Of any good is the amount that sellers are willing and able to sell
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Law of supply
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the claim that the quantity supplied of a good rises when the price of the good rises, other things equal.
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Supply Schedule
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A table that shows the relationship between the price of a good and the quantity supplied.
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Equilibrium
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Price has reached a level where quantity supplies equals quantity demanded.
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Equilibrium Price
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The price where quantity supplied is equal to quantity demanded.
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Equilibrium Quantity
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The quantity supplied and quantity demanded at the equilibrium price.
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Surplus
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When quantity supplied is greater then quantity demanded
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Shortage
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When quantity demanded is greater than quantity supplied.
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