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Supply & Demand. Goods & Services. Goods- products that can be bought by a consumer to satisfy their needs or wants. Examples: food, clothing, pens, shoes, furniture, etc…
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Goods & Services • Goods- products that can be bought by a consumer to satisfy their needs or wants. Examples: food, clothing, pens, shoes, furniture, etc… • Services- not necessarily a physical object, but is paid for by the consumer to satisfy their needs or wants. Examples: barber/hairdresser, dentist, doctor, etc…
Supply & Demand • Supply- the amount of a good or service available to consumers by producers • Demand- the amount of a good or service that is needed or wanted by consumers
Shortage & Surplus • Shortage- not enough of a good or service; the amount demanded exceeds the amount supplied • Surplus- too much of a good or service; the amount supplied exceeds the amount demanded
Opportunity Cost • Opportunity Cost- the amount of products which must be forgone or sacrificed to obtain some amount of a specific product
