Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
23 Cards in this Set
- Front
- Back
Demand |
A schedule or curve that shows the various amounts of a product that consumers will buy at each of a series of possible prices during a specific period. *Is worded to apply to product markets. To adjust it to apply to Resource markets, substitute the word "resource for "product" and the word "businesses" for "consumers". |
|
Law of Demand |
The principle that, other things equal, as price Falls, the quantity demanded Rises, and as price Rises, the quantity demanded Falls. |
|
Demand Curve |
A curve illustrating the inverse relationship between the price of a product and the quantity of it demanded, other things equal. |
|
Determinants of Demand |
Factors other than price that locate the position of a demand curve. |
|
Normal Good |
A good or service whose consumption Rises when income increases and Falls when income decreases. |
|
Inferior Good |
A good or service is consumption declines when income Rises and Rises when income decreases. |
|
Substitute Good |
A good or service that can be used in place of some other good or service. |
|
Complementary Good |
A good or service that is used in conjunction with some other good or service. |
|
Change in Demand |
A change in the quantity demanded of a product at every price; a shift of the demand curve to the left or right. |
|
Change in Quantity Demand |
A movement from one point to another on a fixed demand curve. |
|
Supply |
A schedule or curve that shows the amounts of a product that producers are willing to make available for sale at each of a series of possible prices during a specific period. |
|
Law of Supply |
The principle that, other things equal, as price Rises, the quantity supplied Rises, and it's price Falls, the quantity supplied Falls. |
|
Supply Curve |
A curve illustrating the direct relationship between the price of a product in the quantity of it supplied, other things equal. |
|
Determinants of Supply |
Factors other than price that locate the position of the supply curve. |
|
Change in Supply |
A change in the quantity supplied of a product at every price; a shift of the supply curve to the left or right. |
|
Change in Quantity Supplied |
A movement from one point to another on a fixed supply curve. |
|
Equilibrium Price |
The price in a competitive market at which the quantity demanded and quantity supplied of a product are equal. |
|
Equilibrium Quantity |
The quantity demanded and quantity supplied that occurred at the equilibrium price in a competitive market. |
|
Surplus |
The amount by which the quantity supplied of a product exceeds the quantity demanded any specific (above-equilibrium) price. |
|
Shortage |
The amount by which the quantity demanded of a product exceeds the quantity supplied at a specific (below-equilibrium) price. |
|
Price Ceiling |
A legally established maximum (below-equilibrium) price for a product. |
|
Price Floor |
A legally established minimum (above-equilibrium) price for a product. |
|
Market |
A group of buyers and sellers who are interested in having the potential and freedom to trade. |