This document defines key terms from chapters 21-22 of a civics and economics textbook. It includes definitions for demand, the law of demand, supply, the law of supply, equilibrium price, surplus, shortage, price ceilings, price floors, and minimum wage. All of the terms relate to economic concepts involving the relationship between price and quantity demanded or supplied in a market.

1. Civics and Economics Vocabulary
Chapter 21 - Section One
Demand- the desire, willingness, and ability to buy a good or service
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Demand Schedule- a table that lists the various quantities of a product or service that
someone is willing to buy over a range of prices
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Demand Curve- a graph that shows the amount of a product that would be bought at all
possible prices in the market
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Law of Demand- quantity demanded and price move in opposite directions
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Market Demand- the total demand of all consumers for their product or service
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Utility- the pleasure, usefulness, or satisfaction we get from using the product
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Marginal Utility- additional satisfaction
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Chapter 21 - Section Two
Substitute- Competing products
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Complement- products used together
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Demand Elasticity- the extent to which a change in price causes a change in the
quantity demanded
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Tara Pawlyk Friday, May 17, 2013 8:20:17 AM ET 04:0c:ce:d3:10:88

2. Chapter 21 - Section Three
Supply- the various quantities of a good or service that producers are willing to sell at all
possible market prices
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Law of Supply- the principle that suppliers will normally offer more for sale at higher
prices and less at lower prices
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Supply Schedule- A numerical chart that illustrates the law of supply
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Supply Curve- a graph that shows the amount of a product that would be supplied at all
possible prices in the market
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Profit- the money a business receives for its products or services over and above its
costs
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Market Supply- combination of the supply schedules of all the businesses that provide
the same good or service
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Productivity- how productive workers are
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Technology- the methods, or processes, used to make goods and services
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Subsidy-a government payment to an individual, business, or other group for certain
actions
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Supply Elasticity-a measure of how the quantity supplied of a good or service changes
in response to changes in price
Tara Pawlyk Friday, May 17, 2013 8:20:17 AM ET 04:0c:ce:d3:10:88

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Chapter 21 - Section Four
Surplus- amount by which the quantity supplied is higher than the quantity demanded
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Shortage- the amount by which the quantity demanded is higher than the quantity
supplied
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Equilibrium Price- neither a surplus nor a shortage
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Price Ceiling- a maximum price set by the government that can be charged for goods
and services
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Price Floor- a government minimum price that can be charged for goods and services
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Minimum Wage- lowest legal wage that can be paid to most workers
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Tara Pawlyk Friday, May 17, 2013 8:20:17 AM ET 04:0c:ce:d3:10:88