1-4 Supply and Demand

A person who buys and uses goods and services

Individuals and organizations that determine what products and services will be available for sale

The quantity of a good or service that consumers are willing and able to buy

Illustrates the relationship between the price of a product and the quantity demanded by consumers (as the price decreases, the amount of consumers able and willing to purchase the item will increase)

Illustrates the relationship between the price of the product and the quantity businesses will supply (as the price increases, business will be able to supply larger amounts of the product)

Refers to the quantity of a good or service that businesses are willing and able to provide

Businesses offering very similar products to the same customers

The point where supply and demand are equal

Economic resources (natural, human, and capital)

Raw materials supplied by nature

People producing goods and services

The risk taker who uses resources in an entirely new way to create a new product or service

The products and money used in the production of goods and services

The mismatch of unlimited wants and needs and limited economic resources

Decisions among the alternatives