Supply - the relationship between the quantity of a good or service consumers will offer for sale and the

price charged for that good. It is the relationship between the quantity of a good or service consumers will offer for sale and the price charged for that good. Demand - is the relationship between the quantity of a good or service consumers will purchase and the price charged for that good. It is the want or desire to possess a good or service with the necessary goods, services, or financial instruments necessary to make a legal transaction for those goods or services. Market equilibrium - a condition or state in which economic forces are balanced. It is a market for a product that has attained the price where the amount supplied of a certain product equals the quantity demanded. Comparative Advantage - is essentially the idea that even though one entity may be better at producing a good than a second entity, it still may be beneficial to trade with the second entity if they have lower opportunity costs. Absolute Advantage - The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Demand 2 Demand !upply "uantity "uantity "uantity #liters$ %rice per %rice per %rice per #liters$ #liters$ per liter liter liter per week per week week &' (2.'' )' (2.'' )' ( .2' *' ( .+) ,' ( .+) ,' ( .&' )) ( .)' +) ( .)' +) ( .)' +) ( .2) -) ( .2) -) ( .+) '' ( .'' 2' ( .'' 2' (2. )

Demand !upply "uantity "uantity %rice per %rice per #liters$ #liters$ liter liter per week per week p )' (2.'' )' ( .2' ,' ( .+) ,' ( .&' +) ( .)' +) ( .)' -) ( .2) -) ( .+) 2' ( .'' 2' (2. )