Supply and Demand Terms Crossword

Demand- the desire to own something and the ability to pay for it
Law of Demand- when a good’s price is lower, consumers will buy more of it
Substitution Effect- a consumer reacts to rise in the price of one good by consuming less of that good and more of a substitute good
Demand Curve- a graphic representation of a demand schedule
Complements- two goods that are bought and used together
Substitutes- goods that are used in place of one another
Elasticity of Demand- the way that consumers respond to price changes
Inelastic- relatively unresponsive to price changes
Elastic- very responsive to price changes
Total Revenue- the amount of money the company receives by selling its goods
Supply- the amount of good or service that is available
Law of Supply- producers offer more of a good or service as its price increases and less as its price falls
Quantity Supplied- term used to describe how much of a good or service a producer is willing and able to sell at a specific price
Supply Schedule-shows the relationship between price and quantity supplied for a specific good or service, or how much of a good or service a supplier will offer at various prices
Variables- factors that can change
Supply Curve- a graphic representation of a supply schedule
Elasticity of Supply- measures how firms will respond to changes in the price or good of a service
Disequilibrium- occurs when quantity supplied is not equal to quantity demanded in a market
Shortage- also known as excess demand-exists when the quantity demanded in a market is more than the quantity supplied
Surplus- exists when quantity supplied exceeds quantity demanded and the actual price of a good is higher than the equilibrium price