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After many hours of observation, Jennifer noticed that a squirrel in her backyard retreated up a certain tree every time it was frightened. At the base of that tree was a wheelbarrow. Jennifer wondered how the squirrel found the same tree each time. That night, she moved the wheelbarrow to the base of another tree. The next day, the squirrel retreated up the new tree. This experiment suggests that the squirrel was using
$5.00
A monetary value equivalent to five dollars.
Equilibrium Price
The price in the market where the amount of goods being offered matches the amount of goods people want to buy.
Increase
A situation where there is a rise in magnitude, quantity, or degree.
Quantity Demanded
A specific quantity of a good that buyers are interested in purchasing at a certain price point.
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