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22 Cards in this Set
- Front
- Back
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Market |
A group of buyers and sellers of a particular service |
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Competitive Market |
A market in which there are many buyers and many sellers so that each has a negligible impact on the market price |
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Quantity Demanded |
The amount of goods that buyers are willing and able to purchase |
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law of demand |
The claim that other things equal, the quantity demanded of a good falls when the price of a good rises |
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demand schedule |
a table that shows the relationship between the price of a good and the quanity demanded |
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demand curve |
a graph of the relationship between the price of a good and the quantity demanded |
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normal good |
a good for which, other things equal, an increase in income lead to an increase in demand |
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inferior good |
a good for which, other things equal, an increase in income leads to a decrease in demand |
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substitutes |
two goods for which an increase in the price of one leads to an increase in demand for the other |
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compliments |
two goods for which an increase in demand of one, leads to a decrease in the demand of other |
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Shift in the demand curve |
When a variable factor that is not already part of a demand curve changes the demand is called a: ___________ |
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Movement along the demand curve |
When a variable factor present in the demand curve changes the demand is called a:____________ |
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law of supply |
the claim that, other things equal, when the price of a good rises, the supply of the good rises |
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quantity supplied |
the amount of a good that sellers are willing and able to sell |
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supply schedule |
a table that shows the relationship between the price of a good and the quantity supplied |
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supply curve |
a graph of the relationship between the price of a good and the quantity supplied |
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eqilibirum |
a situation in which the price has reached the level where quantity supplied equals quantity demended |
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equilibrium price |
the price that balances quantity supplied and quantity demanded |
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equilibrium quantity |
the quantity supplied and the quantity demanded at the equilibrium price |
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surplus |
a situation in which quantity supplied is greater than quantity demanded |
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shortage |
a situation in which quantity demanded is greater than quantity supplied |
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Law of supply and demand |
the claim that price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance |
