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Unit 2: Supply and Demand

AP Microeconomics — Note Packet

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Key Terms

Demand

The amount of a good or service consumers are willing and able to ___ at different prices during a specific period.

Law of Demand

States there's an ___ relationship between price and quantity demanded.

Change in Quantity Demanded

A movement ___ the demand curve, caused ONLY by a change in the good's ____________ price.

Change in Demand

A ___ of the entire demand curve, caused by non-price determinants (TRIBE).

Substitutes

Goods used in place of one another; if the price of one goes up, demand for the other shifts ___.

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