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Chapter 3 Terms v2

Across
a table that shows the relationship between the price of a good and the quantity demanded
a market in which there are so many buyers and sellers that each has only a small (negligible) impact on the market price and output
the resources (land, labor, capital) used in the production process
is a payment made by the government to encourage the consumption or production of a good or service
the law that the market price of any good will adjust to bring the quantity supplied and the quantity demanded into balance
a good that consumers buy more of as income rises, holding other things constant
the amount of a good or service that buyers are willing and able to purchase at the current price
condition occurring at the point where the demand curve and supply curve intersect
Down
the value of your income expressed in terms of how much you can afford
the amount at which the quantity supplied is equal to the quantity demanded
a phrase coined by Adam Smith to refer to the unobservable market forces that guide resources to their highest-value use
a table that shows the relationship between the price of a good and the quantity supplied
market condition when the quantity supplied of a good is greater than the quantity demanded; also called excess supply
the law that, all other things being equal, quantity supplied of a good rises when the price of the good rises, and falls when the price if the good falls
the amount of a good or service that producers are willing and able to sell at the current price
an economy in which resources are allocated among households and firms with little or no government interference
the price at which the quantity supplied is equal to the quantity demanded; also know as the market-clearing price
the law that, all other things being equal, quantity demanded falls when the price rises, and rises when the price falls
market condition when the quantity supplied of a good is less than the quantity demanded; also called excess demand
a condition existing when a single company supplies the entire market for a particular good or service