The Twin Themes That Form the Basis of the Definition

question 47

Multiple Choice

The twin themes that form the basis of the definition of economics are:

• A)supply and demand.
• B)inflation and unemployment.
• C)scarcity and efficiency.
• D)inputs and outputs.
• E)price and quantity.

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Definitions:

Decrease in Demand

A reduction in the quantity of a good or service that consumers are willing and able to purchase at a given price range.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing to buy.

Supply Curve

A visual depiction that illustrates the link between a product or service's price and the amount available over a specific time frame.