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27 Cards in this Set

  • Front
  • Back
a listing that shows the quantity demanded at all prices that might prevail in the market at a given time
demand schedule
tells the quantity that consumers will demand at each price
demand curve
states that the demand for an economic product varies inversely with its price
law of demand
a change in the quantity of the product purchased in response to a change in price
change in quantity demanded
some people are willing to but different amounts at the same price
change in demand
a relatively small change in price causes a large change in quantity demanded
elastic demand
a given change in price causes a smaller change in quantity demanded
inelastic demand
the quantity supplied varies directly with its price
law of supply
the amount that producers bring to market at any one price
quantity supplied
the change in a amount offered for sale in reponse to a change in price
change in quantity supplied
different amounts of product for sale at all possible prices
change in supply
total output
total product
states that output will change as one input is varied while others are held constant
law of variable proportions
the extra output generated by adding one more unit of variable input
marginal product
cost of production does not change
fixed change
a cost that does change when the business rate of operation or output changes
variable cost
the number of units sold
total revenue
the extra revenue associated with the production and sale of one additional unit of output
marginal revenue
a system under which a gov. agency decides everyone's fair share
maximum legal price that can be charged for a product
price ceilings
minimum legal price that can be charged for a product
price floors
the price at which the quantity at which the quantity demanded equals the quantity supplied
equilibrium price
regulation of pricing keeps pric competitive even if a monopoly exists
government regulation
the requirement that businesses reveal info & services to help function better
maintaining legal & framework
provide goods and services that markets are unable or unwilling tp provide
providing public goods & services
higher income tax rates for rich than poor-social security
redistributing income
use gov budgets and/or money supply to promote economic growth and control inflation
stabilizing the economy