Section 2 – the quantity of goods that are sold at a specific price. The quantity of goods that are produced/exist As the price of any product goes up, more people are willing to produce that product. the willingness of consumers to buy a specific good at a specific price. how much of an item people want As the price of any product goes up, less people are willing to buy that product. – quantity demanded equals quantity supplied. The amount of goods put out for sale is equal to the amount of goods that people buy. The point where the supply curve and the demand curve meet. There is no shortage or surplus. the amount of a product that people want to buy that is unavailable. When there is not enough of a certain good. Price Goes Up. – the amount of a product that is unsold. When there is too much of a certain good. Price Goes Down. what something is worth in exchange for something else. This is the amount of consumer satisfaction directly or indirectly obtained from a good. service, or resource. The more a good satisfies a person's want or need, then the more valuable it is to that person. Furthermore, different people are likely to place different values on a good. Resources are valuable to the degree that they are used to produce stuff that consumers want. The bottom line is that value, like beauty, is truly in the eye of the beholder. the amount of money it takes to purchase something the actions of two or more rivals in pursuit of the same objective. In the context of markets, the specific objective is either selling goods to buyers or alternatively buying goods from sellers. Competition tends to come in two varieties -- competition among the few, which is market with a small number of sellers (or buyers), such that each seller (or buyer) has some degree of market control, and competition among the many, which is a market with so many buyers and sellers that none is able to influence the market price Competition benefits the consumer. Benefits of Competition: Lower Prices Higher Quality of Goods Bigger selection of goods The process of improving living conditions of people through knowledge and technology Countries with high levels of development Countries in an earlier stage of development One of two goods that could replace each other. If the price of a good goes up, the demand of a substitute for that good would go up. goods that ‘go together’. An increase in the price of one good leads to a decrease in demand for the other good.