Economic Spotter: Supply and Demand at the Gold Rush
Glossary terms from:
A sum of money paid regularly to a person, often by a parent to a child; sometimes paid in compensation for services rendered.
A written order to a financial institution directing the financial institution to pay a stated amount of money, as instructed, from the customer's account.
An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.
The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.
The study of how people, firms and societies choose to allocate scarce resources with alternative uses.
A piece of work usually done on order at an agreed-upon rate. Also a paid position of regular employment.
Law of Demand
As the price of a good or service rises (or falls), the quantity of that good or service that people are willing and able to buy during a certain period of time falls (or rises).
Law of Supply
As the price of a good or service that producers are willing and able to offer for sale during a certain period of time period rises (or falls), the quantity of that good or service supplied rises (or falls).
The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.
People and firms that use resources to make goods and services.
Income received for entrepreneurial skills and risk taking, calculated by subtracting all of a firm's explicit and implicit costs from its total revenues.
The amount of a good or service people will buy at a given price in a given period of time.
An exchange of goods or services for money.
The situation that results when the quantity demanded for a product exceeds the quantity supplied. Generally happens because the price of the product is below the market equilibrium price.
The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time. Normally, as the price of a good or service rises (or falls), the quantity supplied of the good or service rises (or falls).
Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.