Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/26

Click to flip

26 Cards in this Set

  • Front
  • Back
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