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20 Cards in this Set
- Front
- Back
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Supply and Demand Model
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A model of how a competitive market behaves
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Demand Schedule
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How much of a goof or service consumers will want to buy at different prices
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Quantity demanded
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The actual amount of a good or service consumers are willing to buy at some specific price
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Demand Curve
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a graphical representation of the demand schedule. It shows the relationship between quantity demanded and price
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Law of Demand
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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
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a change in the quantity demanded at any given price, represented 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
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a change in the quantity demanded of a good arising from a change in the good price
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Substitutes
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a rise in the price of one of the good leads to an increase in the demand for the other good
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Complements
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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
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A rise in income increases the demand for a good
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Inferior Good
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A rise in income decreases the demand for a good
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Individual demand Curve
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The relationship between quantity demanded and price for an individual consumer
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Quantity Supplied
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The actual amount of a good or service people are willing to sell at some specific price
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Supply Schedule
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How much of a good or service would be supplied at different prices
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Supply curve
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The relationship between quantity supplied and price
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A shift of the Supply Curve
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A change in the quantity supplied of a good or service at any given price. It is represented 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
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A change in the quantity supplied of a good arising from a change in the good's price
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Input
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is a good or service that is used to produce another good or service
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Individual Supply Curve
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the relationship between quantity supplied and price for an individual producer
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Equilibrium price
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price has moved to a level at which the quantity of that good or service supplied.
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