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26 Cards in this Set
- Front
- Back
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demand
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a schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time
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law of demand
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the negative or inverse relationship between price and quantity demanded
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marginal utility
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the extra utility a consumer obtains from the consumption of 1 additional unity of a good or service
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substitution effect
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suggest that at a lower price buyers have the incentive to substitute what is now a less expensive product for similar products ate are now relatively more expensive
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demand curve
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people buy more of a product, service, or resource as its price falls; downward slope
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determinants of demand
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factors other than price that determine the quantities demanded of a good or service
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normal goods
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products whose demand varies directly with money income
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inferior goods
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goods whose demand varies inversely with money income
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substitute good
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a good that can be used in place of another good
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complementary good
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a good that is used together with another good
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change in demand
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a shift of the demand curve to the right or to the left
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change in quantity demanded
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movement from one point to another point
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supply
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a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period
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law of supply
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as price rises, the quantity supplied rises; as price alls, the quantity supplied falls
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supply curve
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producers offer more of a good, service, or resource for sale as its price rises; upward slope
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determinants of supply
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factors other than price that determine the quantities supplied of a good or service
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change in supply
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a change in the schedule and shift of the curve to the left or right
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change in quantity supplied
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a movement from one point to another on a fixed supply curve
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equilibrium price
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the price where the intentions of buyers and sellers match
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equilibrium quantity
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quantity demanded and quantity supplied at the equilibrium price in a competitive market
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surplus
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excess supply
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shortage
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excess demand
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productive efficiency
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production of any particular good in the least costly way
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allocative efficiency
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the particular mix of goods and services highly valued by society
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price ceiling
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the maximum legal price a seller may charge for a product or service
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price floor
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the minimum price fixed by the government
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