Supply3 - Supply Terms Household - Unit of buyers in...

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Supply Terms Household - Unit of buyers in microeconomics. Because it is seen as one buying unit in microeconomics, a household will make coordinated efforts to maximize its utility through its choices of goods and services. The combined actions and preferences of all households in a market will determine the appearance and behavior of the demand curve. Market - A large group of buyers and sellers who are buying and selling the same good or service. Market Economy - An economy in which the prices and distribution of goods and services are determined by the interaction of large numbers of buyers and sellers, none of whom have a significant individual impact on prices or quantities. Market Equilibrium - Point at which quantity supplied and quantity demanded are equal, and prices are market-clearing prices, leaving no surplus or shortage. Market-Clearing Price - The price of a good or service at which quantity supplied is equal to quantity demanded. Also called the equilibrium price.
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