Economics Chapter 4,5, 6

Front 1

The desire, ability, and willingness to buy a product

Back 1

demand

Front 2

a listing that shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time

Back 2

demand schedule

Front 3

a graph showing the quantity demanded at each and every price that might prevail in the market

Back 3

demand curve

Front 4

the quantity demanded of a good or service varies inversely with its price; when a price goes up, quantity demand goes down and vice versa

Back 4

Law of Demand

Front 5

the change in quantity demanded because of a change in price that alters consumer's real income

Back 5

income effect

Front 6

the change in quantity demanded because of the change in the relative price of the product.

Back 6

substitution effect

Front 7

the extra satisfaction we get from using additional quantities of the product begins to diminish

Back 7

diminishing marginal utility

Front 8

What is the difference between a change in the Quantity Demanded and a Change in Deman?

Back 8

A change in quantity demanded is a movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price. A change in demand is when people buy different amounts of the product without a change in price.

Front 9

Explain three things that will cause the demand curve to shift.

Back 9

Demand can be changed because of changes in income, tastes, the price of related goods, expectations, and the number of consumers.

Front 10

the extent to which a change in price causes a change in the quantity demanded

Back 10

demand elasticity

Front 11

a given change in price causes a relatively larger change in quantity demanded

Back 11

elastic demand

Front 12

a given change in price causes a relativly smaller change in the quantity demanded

Back 12

inelastic demand

Front 13

Provide an example with elastic demand

Back 13

green beans, corn, tomatoes, or other fresh garden vegetables. b/c prices are lower in the summer, consumers increase the amount they purchase

Front 14

Provide an example of inelastic demand

Back 14

typical with table salt. A lower or higher price for table salt does not bring about much change in the quantity purchased.

Front 15

List the determinants of demand elasticity

Back 15

Can the purchase be delayed?
Are adequete substitues available?
Does the purchase use a large portion of income?

Front 16

the amount of a product that would be offered for sale at all possible prices that could prevail in the market

Back 16

supply

Front 17

a listing of the various quantities of a particular supplied at all possible prices in the market

Back 17

supply schedule

Front 18

a graph showing the various quantities supplied at each and every price that might prevail in the market

Back 18

supply curve

Front 19

the principle that suppliers will normally offer more for sale at high prices and less at lower prices

Back 19

Law of Supply

Front 20

List the seven things that would cause a change in supply

Back 20

Cost of inputs
Productitivity
Technology
Taxes and Subsidies
Expectations
Government Regulations
Number of Sellers

Front 21

a situation in which the quantity demanded is greater than the quantity supplied at a given price

Back 21

shortage

Front 22

a situation in which the quantitiy supplied is greater than the quantitiy demanded at a given price

Back 22

surplus

Front 23

the price that clears the market by leaving neither a surplus nor a shortage at the end of a trading period

Back 23

equilibrium price