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### 26 Cards in this Set

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 A group of buyers and sellers of a particular good or service Market A market in which there are many buyers and sellers so that each has a negligible impact on the market price Competitive Market The amount of a good that buyers are willing and able to purchase Quanity Demanded The claim that, other things equal, the quanity demanded of a good falls when the price of a good rises Law of Demand A table that shows the relationship between quanity demanded and the price of a good Demand Schedule A graph of the relationship between the price of a good and the quanity demanded Demand Curve A good for which, other things equal, an increase in income leads to an increase in demand Normal good A good for which, other things equal, an increase in income leads to a decrease in demand. Inferior good Two goods for which an increase in the price in one leads to an increase in demand in the other. Substitutes Two goods for which an increase in the price of one leads to a decrease in the demand of another complements The amount of a good that sellers are willing and able to sell Quanity Supplied The claim that, other things equal, the quanity supplied of a good rises when the price of the good rises. Law of Supply A table that shows the relationship between the price of a good and the quanity supplied Supply Schedule A graph of the relationship between the price of a good and the quanity supplied Supply Curve A situation in which the market price has reached the level at which the quanity supplied equals the quanity demanded Equilibrium The price that balances quanity supplied and quanity demanded Equilibrium Price The quanity supplied and quanity demanded at the equilibrium price Equilibrium Quanity A situation in which quanity supplied is greater than quanity demanded Surplus A situation in which quanity demanded is greater than quanity supplied Shortage The claim that the price of any good adjusts to bring the quanity supplied and the quanity demanded for that good into balance Law of Supply and Demand The measure of responsiveness of quanity demanded or quanity supplied to on of its determinates Elasticity The measure of how much the quanity demanded of a good responds to a change in the price of that good, computed as a percentage change in quanity demanded divided by the percentage change in price Price Elasticity of Demand The amount paid by buyers and received by sllers of a good, computed as the price of the good times the quanity sold Total Revenue A measure of how much the quanity demanded of a good responds to a change in a consumers' income, computed as the percentage change in quanity demanded divided by percentage change in income Income Elasticity of Demand A measure of how much the quanity demanded of one good responds to a change in the price of another good, computed as the percentage change in quanity demanded of the first good divided by the percentage change in the price of a second good Cross Price elasticity of demand Measure of how much the quanity supplied of a good responds to a change in the price of that good, computed as the percentage change in quanity supplied divided by the percentage change in price Price elasticity of Supply