Objective 5

Question 1

Law of demand

Answer 1

Quantities of a good/service buyers are willing to purchase at a given price.

Question 2

Law of supply

Answer 2

Quantities of a good/service sellers are willing to sell at a given price.

Question 3

Market clearing price

Answer 3

The price at which buyers and sellers are willing to trade with no surplus.

Question 4

Market equilibrium

Answer 4

The price and quantity of an item at which buyers and sellers are willing to trade; where quantity supplied and quantity demanded are equal.