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25 Cards in this Set
- Front
- Back
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Individual supply curve |
A graphical representation of the relationship between quantity supplied and price for an individual producer |
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Equilibrium price |
The price at which the market is in equilibrium that is the quantity of a good or service demanded equals the quantity of that good or service supplied also referred to as the market clearing price |
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Equilibrium quantity |
The quantity of a good or service bought and sold at the equilibrium or market clearing price |
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Market clearing price |
The price at which the market is in equilibrium that is the quantity of a good or service demanded equals the quantity of that good or service supplied also referred to as the equilibrium price |
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Surplus |
The excess of a good or service that occurs when the quantity supplied exceeds the quantity demanded; surpluses occur when the price is above the equilibrium price |
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Shortage |
The insufficiency of a good or service that occurs when the quantity demanded exceeds the quantity supplied; shortages occur when the price is below the equilibrium price |
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Competitive market |
A market in which there are many buyers and sellers of the same good or service, none of him can influence the price at which the good or service is sold |
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Supply and demand model |
A model of how competitive market behaves |
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Demand schedule |
A list or table showing how much of a good or service consumers will want to buy a different prices |
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Quantity demanded |
The actual amount of a good or service consumers are willing to buy at some specific price |
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Demand curve |
A graphical representation of the demand schedule showing the relationship between quantity demanded and price |
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Law of demand |
The principle that a higher price for a good or service, other things equal, leads people to demand a smaller quantity of that good or service |
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Shift of the demand curve |
A change in the quantity demanded at any given price represented graphically by the change of the original demand curve to a new position denoted by a new demand curve |
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Movement along the demand curve |
A change in the quantity demanded of a good that results from a change in the price of that good |
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Substitutes |
Pairs of goods for which a rise in the price of one of the goods leads to an increase in the demand for the other good |
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Compliments |
Pairs of goods for which a rise in the price of one good leads to a decrease in the demand for the other good |
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Normal good |
A good for which a rise in income increases the demand for that good- the "normal" case. |
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Inferior good |
A good for which a rise in income decreases the demand for the good |
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Individual demand curve |
A graphical representation of the relationship between quantity demanded and a price for an individual consumer |
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Quantity supplied |
The actual amount of a good or service producers are willing to sell at some specific price |
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Supply schedule |
A list or table showing how much of a good or service producers will supply at different prices |
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Supply curve |
A graphical representation of the supply schedule, showing the relationship between quantity supplied and price |
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Shift of the supply curve |
A change in the quantity supplied of a good or service at any given price, represented graphically by the change of the original supply curve to a new position, denoted by a new supply curve |
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Movement along the supply curve |
A change in the quantity supplied of a good that results from a change in the price of that good |
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Input |
A good or service used to produce another good or service |
