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23 Cards in this Set
- Front
- Back
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Market |
A group of buyers and sellers of a particular good or service. |
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Competitive Market |
A market with many buyers and many sellers that have a negligible impact on the market. |
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Perfectly Competitive |
1) The goods offered for sale are exactly the same. 2) There are many buyers and sellers to limit the power a single buyer or seller has over the market price. |
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Price Takers |
Buyers and Sellers in a perfectly competitive market that accept the price the market determines. |
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Monopoly |
Markets with one seller who sets the price. |
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Quantity Demand |
The amount of a good that buyers are willing and able to purchase. |
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Law of Demand |
The quantity demanded of a good falls when prices of the good rise. The quantity demanded of a good increases when prices of the good decrease. |
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Demand Schedule |
Table that shows the relationship between the price of a good and the quantity demanded. |
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Market Demand |
The sum of all individual demands for a particular good or service. |
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Demand Curve |
Line relating price and quantity demanded. |
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Increase in Demand |
Any change that increases the quantity demanded at every price shifts the demand curve to the right. |
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Decrease in Demand |
Any change that reduces the quantity demanded at every price shifts the demand curve to the left. |
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Normal Good |
An increase in income leads to an increase in demand of a good. |
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Inferior Good |
An increase in income leads to a decrease in demand of a good. |
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Substitutes |
Two goods where and increase in the price for one good leads to an increase in demand for the other. |
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Complements |
Two goods where an increase in the price for one good leads to the decrease in demand for the other. |
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Quantity Supplied |
The amount sellers are willing and able to sell. |
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Law of Supply |
The quantity supplied of a good rises when the price of the good rises. |
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Supply Schedule |
A table that shows the relationship between the price of a good and the quantity supplied. |
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Supply Curve |
A graph that shows the relationship between the price of a good and the quantity supplied. |
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Horizontal Axis |
Total quantity supplied at any price is found on the horizontal axis after adding the individual quantities. |
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Increase in Supply |
A change that raised quantity supplied at every price. Curve shifts to the right. |
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Decrease in Supply |
A change that reduces the quantity supplied at every price. Curve shifts to the left. |
