Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
17 Cards in this Set
- Front
- Back
|
Supply
|
The willingness and ability of sellers to provide goods for sale in a market.
|
|
|
Demand
|
The willingness and ability of buyers to purchase goods.
|
|
|
Law of Demand
|
The principle that an inverse relationship exists between the price of a good and the quantity of that good that buyers demand, other things being equal.
|
|
|
Demand Curve
|
A graphical representation of the relationship btwn the price of a good and the quantity of that good that buyers demand.
|
|
|
Change in quantity demanded
|
A change in the quantity of a good that buyers are willing and able to purchase that results from a change in the good's price, other thing being equal.
|
|
|
Change in Demand
|
A change in the quantity of a good that buyers are willing and able to purchase that result from a change in some condition other than the price of that good
|
|
|
Substitute goods
|
A pair of good for which an increase in the price of one causes an increase in demand for the other.
|
|
|
Complementary Goods
|
A pair of goods for which an increase in the price of one results in a decrease in the demand for the other.
|
|
|
Normal good
|
A good for which an increase in consumer incomes results in an increase in demand.
|
|
|
Inferior good
|
A good for which an increase in consumer incomes results in a decrease in demand.
|
|
|
Supply Curve
|
A graphical representation of the relationship btwn the price of a good and the quantity of that good that sellers are willing to supply.
|
|
|
Change in quantity supplied
|
A change in the quantity of a good that suppliers are willing and able to sell that results from a change in the good's price, other things being equal.
|
|
|
Change in Supply
|
A change in the quantity of a good that suppliers are willing and able to sell that results from a change in some condition other than the good's price.
|
|
|
Equilibrium
|
A condition in which buyers' and sellers' plans exactly mesh in the marketplace, so that the quantity supplied exactly equals the quantity demanded at a given price.
|
|
|
Excess quantity demanded (shortage)
|
A condition in which the quantity of a good demanded at a given price exceeds that quantity supplied.
|
|
|
Inventory
|
A stock of a finished good awaiting sale or use. Or the first sign of shortage.
|
|
|
Excess quantity supplied (surplus)
|
A condition in which the quantity of a good supplied at a given price exceeds the quantity demanded.
|
