Ch3 book - Ch3 Introduction to Demand and Supply 3.1 Demand Supply and Equilibrium in Markets for Goods and Services demandcurve ,

Ch3 Introduction to Demand and Supply 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services demand curve a graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis demand schedule a table that shows a range of prices for a certain good or service and the quantity demanded at each price demand the relationship between price and the quantity demanded of a certain good or service equilibrium price the price where quantity demanded is equal to quantity supplied equilibrium quantity the quantity at which quantity demanded and quantity supplied are equal for a certain price level equilibrium the situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change excess demand at the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage When the price is below equilibrium excess supply at the existing price, quantity supplied exceeds the quantity demanded; also called a surplus above-equilibrium price law of demand the common relationship that a higher price leads to a lower quantity demanded of a certain good or service and a lower price leads to a higher quantity demanded, while all other variables are held constant law of supply the common relationship that a higher price leads to a greater quantity supplied and a lower price leads to a lower quantity supplied, while all other variables are held constant price what a buyer pays for a unit of the specific good or service quantity demanded the total number of units of a good or service consumers are willing to purchase at a given price quantity supplied the total number of units of a good or service producers are willing to sell at a given price shortage at the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand supply curve a line that shows the relationship between price and quantity supplied on a graph, with quantity supplied on the horizontal axis and price on the vertical axis supply schedule

a table that shows a range of prices for a good or service and the quantity supplied at each price supply the relationship between price and the quantity supplied of a certain good or service surplus at the existing price, quantity supplied exceeds the quantity demanded; also called excess supply ****In economic terminology, demand is not the same as quantity demanded. When economists talk