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willingness and ability to buy a product creates ____________
Demand
Decreases in demand shift the demand curve to the _______
left
A shift to the right of a demand curve indicates ____________ in demand
an increase
The quantity (or number) of a product that consumers are willing to buy at a particular price
quantity demanded
Willingness and ability to produce and sell a product at a certain price point
Supply
The study of people and businesses within a small market
Microeconomics
simplifies the interactions of producers and consumers in the economy to help us visualize how producers and consumers interact in an economy
Circular Flow Model
In the Circular Flow Model, goods and services and money flow in _______ directions
opposite
Market in which goods and services are bought and sold
Product Market
Market in which productive resources (factors of production) are bought and sold
Factor Market
The Law of Demand states that as prices increase, quantity demanded _______
decreases
The Law of Supply states that as prices increase, quantity supplied _______
increases
Table that lists the quantity of a good that a person will purchase at each price in a market
Individual demand schedule
shows the quantities demanded at each price by all consumers in the market
Market demand schedule
Keeping all things constant, except for price to examine the change
Ceteris paribus
when income increases, demand for _________________ increases
normal goods
