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