Econ 202 Test 2

Front 1

The forces created by buyers and sellers that establish the prices and quantities exchanged of goods and services

Back 1

Products market

Front 2

The forces created by buyers and sellers that establish the prices and quantities exchanged of resources such as land, labor services, and capital

Back 2

Resources market

Front 3

The price of a product or service and the amount consumers are willing and able to purchase are inversely related. If price rises, the quantity demand falls or if prices fall quantity demanded increases, all other things held constant; or the area below the demand curve

Back 3

Law of Demand

Front 4

The dollar price that sellers recieve from buyers; a price expressed in terms of money, not in terms of an amount of another good

Back 4

Money Price

Front 5

A good for which a positive relationship exists between changes in consumer income and changes in demand

Back 5

Normal Good (Superior)

Front 6

A good for which an inverse relationship exists between changes in consumer income and changes in demand.

Back 6

Inferior Good

Front 7

The total opportunity cost to an individual of obtaining a good; includes money price and all other costs, such as transportation costs or waiting costs

Back 7

Full Price

Front 8

The price ratio or "trade off" in consumption between one product (or service) or between one good and other goods taken as a whole

Back 8

Relative Price

Front 9

A graphical representation of the quantities of a product that people are willing and able to purchase at all possible prices.

Back 9

Demand Curve

Front 10

The amount of any good or service cosumers are willing and able to purchase al all various prices.

Back 10

Quantity Demanded

Front 11

Anything other than price, such as consumer income and preferences, that determines the amount of a product or service that consumers are willing and able to purchase.

Back 11

Factors affecting demand

Front 12

The latin phrase for "all other things being equal"

Back 12

Ceteris paribus

Front 13

A change in the amount of a good a consumer is wiling and able to purchase that is caused by a change in the price of the good or service

Back 13

Change in quantity demanded

Front 14

A shift to the entire demand curve to the right or left

Back 14

Change in demand

Front 15

A good for which an inverse relationship exists between changes in consumer income and changes in demand.

Back 15

Inferior Good

Front 16

Goods for which a positive relationship exists between changes in the price of one and changes in demand for the other.

Back 16

Substitues

Front 17

Goods for which an inverse relationship exists between changes in the price of one and changes in demand for the other.

Back 17

Complements

Front 18

The total amount consumers are willing and able to purchase of a product at all possible prices, obtained by summing the quantities demanded at each price over all buyers.

Back 18

Market Demand

Front 19

The price of a product or service and the amount that producers are willing and able to offer for sale are positively related. If price rises, then quantity supplied rises; if price decreases, then quantity decreases.

Back 19

Law of Supply

Front 20

The amount of any good or service that producers are willing and able to produce and sell at some specific price.

Back 20

Quantity Supplied

Front 21

A graphically representation of the quantities of a product or service that producers are willing and able to sell at all possible prices.

Back 21

Supply Curve

Front 22

A change in the amount of a good a producer is willing and able to produce and sell that is caused by a change in the price of the good or service

Back 22

Change in quantity supplied

Front 23

A shift of the entire supply curve to the right or left.

Back 23

Change in supply

Front 24

Anything other than price, such as technology or input costs, that determines the amount of a product or service that sellers are willing and able to offer for sale

Back 24

Factors affecting supply

Front 25

The total amount producers are willing and able to offer for sale of a product at all possible prices, obtained by summing the quantities supplied at each price over all products.

Back 25

Market Supply

Front 26

The interaction of buyers and sellers producing and buying goods and services. Prices tend toward equality in a market through the continuos exchange between suppliers and demanders.

Back 26

Market

Front 27

A market in which there are enough buyers and sellers that no single buyer or seller can influence price.

Back 27

Perfect Market

Front 28

In perfect markets, the market forces of supply and demand produce a single, equilibrium price for a good or service

Back 28

Law of one price

Front 29

The amount by which quantity supplied exceeds quantity demanded at a price above the quilibrium price

Back 29

Surplus

Front 30

The amount by which quantity demanded exceeds quantity supplied at a price below the equilibrium price.

Back 30

Shortage

Front 31

The price at which quantity demanded is equal to quantity supplied; other things being equal , there is no tendency for this price.

Back 31

Equilibrium price.