Demand Supply Word Demand Supply Law of Demand

Demand Supply Word -Demand -Supply -Law of Demand -Law of Supply -Utility -Demand Elasticity -Surplus -Shortage -Equilibrium Price -Substitute -Complement Student Description Teacher Description Connections, Questions, etc.

Demand When a person buys a good or service Cannot be measured until the product is bought

Supply The amount of goods and services a business is willing to produce

Law of Demand People will buy more of a product at a lower price and will buy less at a higher price

Law of Supply The more people are willing to pay the more products a business will produce The less people will pay the less a business will produce

Utility The use a person has for a product The more use a person has for a product the more likely they are to buy more of that product

Demand Elasticity How does a person’s demand change when the price changes? If the price changes what happens to a person’s demand?

Surplus When a business has products left over Supply is greater than demand

Shortage When a business does not have enough products for all the people who want to buy it Supply is less than demand

Equilibrium Price The price where the quantity supplied and the quantity demanded are equal Shortcut – where the supply and demand curves cross each other

Substitute A product that can be used in place of another product The price of one product impacts the demand for the other product Ex) margarine for butter

Complement Two products that you use together If the price of one changes the demand for the other could also change The price of one product impacts the demand for the other product Batteries and flashlights