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17 Cards in this Set
- Front
- Back
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Law of demand
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The principle that there is an inverse relationship between the price of good and quantitiy buyers are willing to purchase in a difined tume period, ceteris paribus.
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Demand
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A cure or schedule showing the various quanities of product consumers are willing to purchase at possible price duing a specified period of time, ceteris paribus
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Change in Quantity demanded
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A movement between points along a stationary demand curve, cetris paribus
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Change in demand
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an increase or decrease in the quantity demanded at each possible price. An increase in demand is a rightward shift in the entire demand curve. A decrease in demand is a leftwared shift in the entire demand curve
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normal Good
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Any good for which there is a direct relationship between changes in income and its demnd curve
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Inferior Good
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Any good for which there is an inverse relationship between changes in income and its demand curve
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Substitute Good
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A good that competes with another good for consumer purchases. As a result, there is a direct relationship between a price change for one good and the demand for its "competitor" good.
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Complementary good
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A good that is jointly consumed with another good. As a result, there is an inverse relaitonship between a price change for one good and th edemand for the "go together" good.
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Law of supply
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The principle that there is a direct relaionship between the price of a good and th equantity sellers are willing to offer for sale in a defined time period, ceteris paribus.
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Supply
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A curve or schedule showing th evarious quantities of a product sellers are wiling to produce and offer for sale at possible prices during a specified time period, ceteris paribus.
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Change in quantity supplied
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A mvement between points along a stationary supply curve, cetris paribus.
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Change in supply
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An increase or decrease in the quantity supplied at each possible price. An increase in supply is a rightward shift in the entire supply curve. A decrease in supply is a leftward shift in th eentire supply curve.
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Market
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Any arrangement in which buyers and sellers interact to determine the price and quantity of goods an dservices exchanged
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surplus
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A market condition that existing at any price where the quantity supplied is greater than the quantity demanded
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shortage
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A market condition exsiting at any price where the quantity supplied is less tan the quantity demanded
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Equilibrium
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A market condition tha toccurs at any price and quantity where the quantity demanded and th equantity supplied are equal
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Price system
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A mechanism that uses the forces of supply and demand to creat an equilibrium through rising and falling prices
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