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28 Cards in this Set

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  • Back
Market
a place or service that enables buyers and sellers to exchange goods and services
Barter
the direct exchange of goods and services without the use of money
Double Coincidence of Wants
the situation that exists when A has what B wants and B has what A wants
Transaction Costs
the costs involved in making an exchange
Relative Price
the price of one good expressed in terms of the price of another good
Quantity Demanded
the amount of a product that people are willing and able to purchase at a specific price
Law of Demand
the quantity of a well-defined good or service that people are willing and able to purchase during a particular period of time decreases as the price of that good or service rises and increases as the price falls, everything else held constant
Determinant of Demand
Factors other than the price of the good that influence demand: INCOME, TASTES, PRICES OF RELATED GOODS AND SERVICES, EXPECTATIONS, and NUMBER of BUYERS
Demand Schedule
a table or list of the prices and the corresponding quantities demanded of a particular good or service
Demand Curve
a graph of a demand schedule that measures price on the vertical axis and quantity demanded on the horizantal axis
Normal Good
goods for which demand increases as income increases
Inferior goods
goods for which demand decreases as income increases
Substitue goods
goods that can be used in place of each other; as the price of one rises, the demand for the other rises
Complementary Goods
goods that are used together; as the price of one rises, the demand for the other falls
Supply
the amount of a good or service that producers are willing and able to offer for sale at each possible price during a period of time, everything else held constant
Quantity supplied
the amount sellers are willing and able to offer at a given price during a particular period of time, everything else held constant
Law of Supply
the quantity of a well-difined good or serice that producers ar e willing and able to offer for sale during a particular period of time increases as the price of the good or service increases and decreases as the price decreases, everything else held constant
Determinants of Supply
factors other than the price of the good that influence supply- PRICES OF RESOURCES, TECHNOLOGY AND PRODUCTIVITY, EXPECTATIONS OF PRODUCERS, NMBER OF PRODUCERS, and the PRICES OF RELATED GOODS AND SERVICES.
Supply Schedule
a table or list of prices and corresponding qunatities supplied of a particular good or service
Supply Curve
a graph of a supply scedule tha tmeasures price on the vertical axis and quantity supplied on the horizontal axis
Productivity
the quantity of output produced per unit of resource
Equilibrium
the price and quantity at which quantity demanded and quantity supplieed are equal
Disequilibrium
a point at which quantity demanded and quantity supplied ar enot equal at a particular price
Surplus
a quantity supplied that is larger than the quantity demanded at a giben price; it occurs whenever the price is greater than the equilibrium price
Shortage
a quantity supplied that is smaller than the quantity demanded at a given price; it occurs whenever the price is less than the equilibrium price
Exchange rate
the rate at which monies of different countries are exchanged
Price Floor
a situation in which the price is not allowed to decrease below a certain level
Price Ceiling
a situation in which the price is not allowed to rise above a certain level