Honors Econ Unit 2 Vocabulary

4. When a product or service exceeds the demand
5. A government rule that sets the maximum legal price you can charge for a good, service or wage.
7. Economic marketplace where businesses buy essential inputs they need to make goods and services.
10. A specific market price where the number of goods consumers want to buy equals the number of good producers want to sell.
11. A market condition where the demand for the product or service is greater than the available supply at the current price.
12. A basic economic rule stating that if the price of an item goes up the demand goes down, if the price goes down the demand goes up.

1. An organization or economic system that makes and sells goods or services to people in exchange for money.
2. A basic economic rule stating that when the price of a good or service goes up suppliers will produce and offer more of it.
3. A visual model that shows how money, goods, and services move through an economy between households and businesses.
6. Economic marketplace where businesses sell goods and services to consumers, companies, and other buyers.
8. A basic economic unit consisting of one or more people living within the same house who make joint financial and economic decisions.
9. A government rule that sets the lowest legal price you can charge for a good, service or wage.