Econ Chapter 7

Front 1

_____ The amount of a good or service that consumers are able and willing to buy at various possible prices during a specified time period

Back 1

Demand

Front 2

____ The amount of a good or service that producers are able and willing to sell at various prices during a specified time period

Back 2

Supply

Front 3

___ The process of freely exchanging goods and services between buyers and sellers

Back 3

Market

Front 4

_______ A transaction in which a buyer and a seller exercise their exonomic freedom by working out their own terms of exchange

Back 4

Voluntary Exchange

Front 5

_____ __ _______ Economic rule stating that the quantity demanded and price move in opp directions

Back 5

Law of Demand

Front 6

________ _________ the amount of a good or service that a consumer is willing and able to purchase at a given time

Back 6

Quantity Demanded

Front 7

_______ ________ ____________ Economic rule stating that indiv cant keep buying the same quantity of a product if its price rises while their income stays the same

Back 7

Real income effect

Front 8

________ __________ Economic rule staing that if 2 items satisty the same need and the price of one rises, people will buy the other

Back 8

Subsitution Effect

Front 9

____ The ablility of any good or service to satisy consumer wants

Back 9

Utility

Front 10

______ ______ An additional amount of satisfaction

Back 10

Marginal Utility

Front 11

___ ___ ______ _________ _______ rule stating that the additional satisfaction a consumer gets from purchasing one more unit of a product wil lessen with each affitional unit purchased

Back 11

Law of Diminishing Marginal Utility

Front 12

_____ _________ Table showing quantities demanded at differnt possible prices

Back 12

Demand Rule

Front 13

____ _______ Downwardsloping line that shows in graph form the quantities demanded at each possible price

Back 13

Demand Curve

Front 14

_________ _____ A product often used with another product

Back 14

Complementary Good

Front 15

_____ Economic concept dealing iwht consumers' responsiveness to an increase or decrease in price of a product

Back 15

Elasticity

Front 16

____ _____ __ _____ Economic concept that deals with how much demand varies according to changes in price

Back 16

Price Elasticity of Demand

Front 17

____ _____ Situation in which the rise or fall in a product;s price greatly affects the amount that people are willing to buy

Back 17

Elastic Demand

Front 18

_____ ______ Situation in which a products price change has little impact on the quantity demanded by consumers

Back 18

Inelastic demand