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23 Cards in this Set
- Front
- Back
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Ceteris Paribus |
other things being equal or remaining the same. |
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Change in Demand |
Change in the qualities demanded at every price, caused by a change in the determinants of demand. |
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Change in supply |
A change in the qualities supplied at every price, caused by a change in the determinants of supply. |
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Change in the quantity demanded |
The change in the quality that results from a price change. It is illustrated by a movement along a demand curve. |
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Change in the quantity supplied |
the change in the amounts hat will be produced as a result of a price change. this is shown as a movement along a supply curve. |
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Complementary products |
Products that tend to be purchased jointly and for which demand is, therefore, related. |
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Demand |
The quantities tat consumers are willing and able to buy per period of time at various prices. |
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Demanded Schedule |
a table showing the various quantities demanded per period of time at different prices. |
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Equilibrium price |
The price at which the quantity demanded equals the quantity supplied such that there is neither a surplus of a shortage |
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Equilibrium quantity |
The quantity that prevails at the equilibrium price |
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Income Effect |
The effect that a price change has on real income and therefore on the quantity demanded of a product |
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Inferior products |
Products for which demands will decrease as a result of an increase in income and increase as a result of a decrease in income. |
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market |
a mechanism that brings buyers and sellers together and assists them in negotiating the exchange of products. |
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Market demand |
the total demand for a product by all consumers |
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Market Supply |
the total supply of a product offered by all producers |
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Normal products |
Products for which demand will increase with an increase in income and decrease as a result of a decrease in income. |
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Real income |
income is measured in terms of the amount of goods and services that it will buy. it will increase if either actual income increases or prices fall. |
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Shortage |
at the prevailing price, the quantity supplied is smaller than the quantity demanded. |
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Substitute products |
any product for which demand varies directly in relation to a change in the price of a similar product. |
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substitution effect |
the substitution of one product for another as a result of a change in their relative prices. |
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supply |
the quantities that producers are willing and able to sell per period of time at various prices. |
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supply schedule |
a table showing the various quantities supplied per period of time at different prices. |
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surplus |
at the prevailing price, the quantity demanded is smaller than the quantity supplied. |
