Business Q2 U1

What is the term for how the supply of available goods and demands for those goods by consumers work together to determine the average prices of goods in a market?

supply and demand

What is competition?

when companies selling similar products compete for the same customer

What is the term for the point on a supply/demand curve in which the quantity demanded is equal to the quantity supplied?

equilibrium

What is the term for variables in an economy that cause a change in price or supply and demand?

market forces

A ________ is an intangible product that is often expressed in intellectual energy; a ________ is a tangible, physical product that can be felt and touched.

service good

What is the term for the total value of goods produced and services provided in a country over one year?

Gross Domestic Product

___________ is based on a constant environment, meaning the assumption is that market forces do not change.

The law of supply and demand

What is the supply/demand curve?

a line graph that depicts the relation of supply and demand to price

What is the term for the incentive of starting a business for the sake of earning money?

profit motive