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20 Cards in this Set
- Front
- Back
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law of demand
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quantity rises as price falls. other things constant
quantity demanded falls as price rises, other things constant |
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demand curve
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the graphic representation of the relationship between price and quantity demanded
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demand
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a schedule of quantities of a good that will be bought per unit of time at various prices, other things constant
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quantity demanded
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a specific amount that will be demanded per unit of time at a specific price, other things constant
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movement along a demand curve
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the graphical representation of the effect of a change in price on the quantity demanded
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shift in demand
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the graphical representation of the effect of anything other than price on demand
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market demand curve
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the horizontal sum of all individual demand curves
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law of supply
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quantity supplied rises as price rises, other things constant
quantity supplied falls as price falls other things constant |
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supply curve
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the graphical representation of the relationship between price and quantity supplied
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supply
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a schedule of quantities a seller is willing to sell per unit of time at various prices, other things constant
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quantity supplied
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a specific amount that will be supplied at a specific price
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movement along a supply curve
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the graphical representation of the effect of a change in price on the quantity supplied
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shift in supply
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the graphical representation of the effect of the change in a factor other than price on supply
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market supply curve
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the horizontal sum of all individual supply curves
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equilibrium
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a concept in which opposing dynamic forces cancel each other out
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equilibrium price
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the price toward which the invisible hand drives the market
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equilibrium quantity
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the amount bought and sold at the equilibrium price
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excess supply
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quantity supplied is greater than quantity demanded
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excess demand
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quantity demanded is greater than quantity supplied
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fallacy of composition
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the false assumption that what is true for a part will also be true for the whole
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