Law of Demand-States that consumers will generally buy less of an item at a higher prics than at a lower price .
Price-It the amount of money givem or asked for when goods or services are bought or sold.
Demand-Is the amount or quantity of goods and services that consumers are willing and able to buy at various prices.
Supply-Is the amount of goods and services that producers will provide at various prices.
Law of Demand
Law of Supply
Equilibrium Price
The Law of Demand states that consumers will generally buy less of an item at a higher price than at a lower price.
The Law of Supply states that the higer the price, the more producers will supply.
The price-at a point where the amount supplied equals the amount demanded-is called the Equilibrium Price.
1. Define Price, Demand, and Supply.
2. What are the two principles of our market economy?