Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

25 Cards in this Set

  • Front
  • Back
the desire ability and willingness to buy a product
area of economics that deals with behavior and decision making by small units such as individuals and firms
micro economics
listing that shows the various quantities demanded of a particular product at all prices that might prevail in the market.
demand schedule
graph showing the quantity demanded at each and every price taht might prevail in the market
demand curve
states that the quantity demanded of a good or service varies inversely with its price
law of demand
demand curve that shows the quantities demanded by everyone who is interested in purchasing the product
market demand curve
extra usefulness or satifaction a person gets from acquiring or using one more unit of a product
marginal utility
states that the extra satisfaction we get from using additional quantities of our product begins to diminish.
diminishing marginal utility
movement along the demand curve that shows a change in the quantity of the product purchased in response to price change
change in quantity demanded
change in quantity demanded because of a change in price that alters consumers' real income
income effect
change in quantity demanded because of the change in the relative price of the product
substitution effect
causes demand curve shift due to people's will to buy different amounts of the product at the same prices.
change in demand
products that can be used in place of other products
products that are defined when use of one increases use of other
measure of responsiveness that tells us how a dependent variable such as quantity ressponds to a change in an independent variable such as price
total fixed cost
cost that changes when the business rate of operation or outbput changes
variable cost
sum of the fixed and variable costs
total cost
extra cost incurred when a business produces one additional unit of a product
marginal cost
electronic business or exchange conducted over the internet
number of units sold multiplied by the average price paid
total revenue
extra revenue associated with the production and sale of one additional unit of output
marginal revenue
type of cost-beefit decision making that compares the extra benefits to the extra costs of an action
marginal analysis
total output or total product the business needs to sell in order to cover its total costs
break even point
reached wen marginal cost and marginal revenue are equal
profit-maximizing quantity of output