PRINCIPLES OF ECONOMICS A STREAMLINED APPROACH REVISION HANDBOOK 2026 NATIONAL INCOME INFLATION AND UNEMPLOYMENT

PRINCIPLES OF ECONOMICS A STREAMLINED
APPROACH REVISION HANDBOOK 2026
NATIONAL INCOME INFLATION AND
UNEMPLOYMENT

◉ Law of Supply. Answer: The claim that, other things being equal,
the quantity supplied of a good rises when the price of the good
rises


◉ Supply Schedule. Answer: A table that shows the relationship
between the price of a good and the quantity supplied


◉ Supply Curve. Answer: A graph of the relationship between the
price of a good and the quantity supplied


◉ Equilibrium. Answer: A situation in which the market price has
reached the level at which quantity supplied equals quantity
demanded


◉ Equilibrium Price. Answer: The price that balances quantity
supplied and quantity demanded

, ◉ Equilibrium Quantity. Answer: The quantity supplied and the
quantity demanded at the equilibrium price


◉ Surplus. Answer: A situation in which quantity supplied is greater
than quantity demanded


◉ Shortage. Answer: A situation in which quantity demanded is
greater than quantity supplied


◉ Law of Supply and Demand. Answer: The claim that the price of
any good adjusts to bring the quantity supplied and the quantity
demanded for that good into balance


◉ Supply. Answer: represents the amount of goods a market can
provide


◉ Demand. Answer: stands for the amount of goods customers are
willing to buy


◉ Impact (Shift in Demand & Supply). Answer: whenever there is a
change in one of the factors of either supply or demand, market
equilibrium will be affected