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10 Cards in this Set
- Front
- Back
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What is a COMPETITIVE MARKET?
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A market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold.
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What is a SUPPLY & DEMAND MODEL?
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A model of how a competitive market works.
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What is a DEMAND SCHEDULE?
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Shows how much of a good or service consumers will want to buy at different prices.
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What is a DEMAND CURVE?
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A graphical representation of the demand schedule. It shows the relationship between quantity demanded and price.
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What is QUANTITY DEMANDED?
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Is the actual amount of a good or service consumers are willing to buy at some specific price.
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What is the LAW OF DEMAND?
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Says that a higher price for a good or service, other things being equal, leads people to demand a smaller quantity of that good or service.
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What is a SHIFT OF THE DEMAND CURVE?
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A change in the quantity demanded at any given price, represented by the change of the original demand curve to a new position, denoted by a new demand curve
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What is a MOVEMENT ALONG THE DEMAND CURVE?
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A change in the quantity demanded of a good that is the result of a change in that good's price.
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What do economists mean when they say "THE DEMAND FOR X INCREASED OR THE DEMAND FOR Y DECREASED?"
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Means that the demand curve for X or Y shifted--not that the quantity demanded rose or fell because of the change in price.
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What are the 5 PRINCIPAL FACTORS THAT SHIFT DEMAND?
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1. Changes in the prices of related goods or services.
2. Changes in income 3. Changes in taste. 4. Changes in expectations 5. Changed in the number of consumers. |
