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22 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Crossman model of intertemporal consumption choice
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health is considered as personalized caoital good, which may grow through investment in the person's own health
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CMICC
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demand
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quantity or amount of goods or services consumers are willing and able to buy at a given price, place, and at a given period of time.
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normal goods
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goods or services for which quantity demand at every price increases when income rises
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inferior goods
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goods or services for which quantity demand falls when income rises
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demand schedule
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relationship between the quantity demanded and the price of that good or service
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demand curve
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shows graphically the relationship between the quantity of a good or service demanded and its corresponding price, with other variables held constant
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demand function
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presenting the relationship between the price and quantity demanded through mathematical expression
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law of demand
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states that as price of a particular product increases, quantity demanded off that product decreases; and as price of a particular product decreases, quantity demanded of that product increases, if other factors remain constant
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income effect
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when the price of goods or services decreases, the consumer can afford to buy more of it or vice versa
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substitution effect
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consumers tend to buy goods or services with a lower price. the price of good or service that a consumers buy increases, they look for substitutes with a lower price
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change in quantity demanded
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indicates movement form one point to another point of the same demand curve due to a change in the price of goods and services
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change in demand
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shifting from one demand curve to another brought by the changes in all determinants of demand except price
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supply
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defined as the amount or quantity of goods and services producers are willing and able to supply at a given price, at a given period of time
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supply schedule
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relationship between the quantity of a good or service supplied and its price
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supply curve
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shows graphically the quantity of a good supplied at each price, with other factors that affect quantity supplied held constant
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supply function
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a mathematical expression of the Law of Supply or the relationship between price (P) and quantity supply (Qs)
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law of supply
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states that as price decreases, quantity supplied also increases; and as price decreases, quantity supplied also decreases
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change in quantity supplied
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movement along the supply curve
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change in supply
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shifting from one supply curve to another brought by change in all determinants of supply except price
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law of demand and supply
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when demand is greater than supply, price increases; when supply is greater than demand, price decreases; and when demand is equal to supply, price remains constant
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market equilibrium
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it is a state which implies a balance between the opposing forces, a situation in which quantity demanded and quantity supplied are equal
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market shock
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anything which moves a market out of equilibrium
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