Business Study Guide
Business Study Guide
Supply: the number of products-- goods and services-- that businesses are willing to sell at different prices at specific times. Demand: the number of goods and services that consumers are willing to buy at different prices at a specific time. Equilibrium Price: the price at which the number pf products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time. Competition: the rivalry among businesses for consumers' dollars. Because the supply and demand curves intersect to make them equal ( this is the equilibrium price) they are all connected and the supply and demand are partly determined by the competition in the area. With more competition this could effect supply and demand negatively, but with less competition supply and demand could increase.