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17 Cards in this Set
- Front
- Back
supply
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amount of goods and services that producers are able and willing to sell at various
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demand
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the desire, willingness, and ability to buy a good or service
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need
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requirements for survival
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want
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the things we would like to have; items that make life more comfortable and enjoyable
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law of supply
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suppliers will normally offer more for sale at higher prices and less at lower prices
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law of demand
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the concept that people are normally willing to buy less of a product if the price is high and more of it if the price is low
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diminishing marginal utility
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decreasing satisfaction or usefulness as additional units of a prodduct are acquired
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substitutes
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a competing product that comsumers can use in place of another
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complements
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prlduct often used with another product
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shortage
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situation in which quantity demanded is greater than quantity supplied
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surplus
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situaation in which quantity supplied is greater than quantity demanded
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equilibrium point(price)
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the price at which the amount producers are willing to supply is equal to the amount consumers are will to buy
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factors of production
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natural resources
capital labor entrepreneur |
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supply elasticity
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a measure of how the quantity supplied of a good or service changes in response to changes in price
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supply curve
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moves right when supply increases
moves left when supply decreases |
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demand curve
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moves right when demand increases
moves left when demand decreases |
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demand elasticity
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extent to which a change in price causes a change in the quantity demanded
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