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
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
the amount of a product
that is unsold. When there
is too much of a certain
 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.
amount of money
it takes to purchase
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
 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
goods that ‘go together’. An increase in the
price of one good leads to a decrease in
demand for the other good.