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9 Cards in this Set

  • Front
  • Back
Quantity demanded
The amount of a good that buyers are willing and able to purchase
Law of demand
The claim that the quantity demanded of a good falls when the price rises, other things equal
Substitutes
Two goods for which an increase in the price of one leads to an increase in the demand for the other
Complements
Two goods for which an increase in the price of one leads to a decrease in the demand for the other
Market
A group of buyers and sellers of a particular good or service
Competitive market
A market in which there are many buyers and sellers so that each has a negligible impact on the market price
Perfectly competitive market
- All goods exactly the same
- Buyers & sellers so numerous that no one can affect market price, each is a "price taker"
Quantity supplied
The amount of a good that sellers are willing and able to sell
Law of supply
The claim that the quantity supplied of a good rises when the price of the good rises, other things equal