Economics Supply & Demand

Front 1

desire to own something and ability to pay for it

Back 1

Demand

Front 2

says when a good's price is lower, consumers will buy more of it

Back 2

law of demand

Front 3

when consumer reacts to an increase in price of a good & replaces it with another good

Back 3

substitution effect

Front 4

change in consumption that results when a price increase causes a real income to decrease

Back 4

income effect

Front 5

table that lists quantity of a good that a person will buy @ diff prices

Back 5

demand schedule

Front 6

shows quantities demanded @ various prices by all consumers in the market

Back 6

market demand schedule

Front 7

graphic representation of a demand scedule

Back 7

demand curve

Front 8

latin phrase "all other things held constant"

Back 8

Ceteris Paribus

Front 9

factors that lead to the shift of demand

Back 9

Non-Price Determinants

Front 10

goods that concumers demand more of when their income increases

Back 10

normal good

Front 11

buy in smaller quanitities or not at all

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inferior good

Front 12

statisitcal characteristics of populations

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demographics

Front 13

2 goods bought and used otgether

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complemts

Front 14

goods used in place of another

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substitute goods

Front 15

how drastically buyers increase or decrease demand bc of price

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elasticity of demand

Front 16

unresponsive to a change in price

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inelastic

Front 17

responsive to a change in price

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elastic

Front 18

If the elasticity is 1

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unitary elastic

Front 19

how much $ company recieves by selling its goods

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revenue

Front 20

amount of good or service that is availiable

Back 20

supply

Front 21

producers offer more of a good or service as its price increase & less as its price falls

Back 21

law of supply

Front 22

how much of a good a producer is willing to sell

Back 22

quantity supplied

Front 23

shows relationship between price and quantity supplied for a specific good or service

Back 23

supply schedule

Front 24

factors that can change

Back 24

variables

Front 25

shows relationship between prices & total quantity supplied by ALL firms in a particular market

Back 25

market supply scheudle

Front 26

graphic representation of a supply schedule, horizontal axis measure quantity of good suppled

Back 26

supply curve

Front 27

graph of quantity supplied of a good by all suppliers @ various prices

Back 27

market supply curve

Front 28

measure of the way quantity supplied reacts to a change in price

Back 28

elasticity of supply

Front 29

change in output from hiring one more worker

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marginal product of labor

Front 30

level of production in which marginal product of labor increases as the number of workers increases

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increasing marginal returns

Front 31

firm diminishing marginal returns of labor will produce less and less output for each additional unit of labor

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decreasing marginal returns

Front 32

workers getting in each others way and disrupt overall output

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negative marginal return

Front 33

cost that doesnt change

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fixed cost

Front 34

costs that rise or fall depending on quantity produced

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variable costs

Front 35

fixed & variable costs added together

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total costs

Front 36

additional costs of producing one more unit

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marginal costs

Front 37

additional income from selling one more unit of a good

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marginal revenue

Front 38

total cost divided by quantity proudced

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average costs

Front 39

cost of operating the facility

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operating cost

Front 40

gov payment that supports business or market

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subsidy

Front 41

tax on production or sale of good

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Excise Tax

Front 42

gov intervention in a market that affects price, quantity, or quality of a good

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Regulation

Front 43

point of balance @ which the quantity demanded equals quantity supplied

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Equilibrium

Front 44

quantity supplied doesn't equal quantity demanded

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disequilibrium

Front 45

excess demanded is greater than quantity supplied

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shortage

Front 46

quantity supplied exceeds demanded

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surplus

Front 47

max price that can legally charged for good or service

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price ceiling

Front 48

priced ceilings placed on apartment rents

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rent control

Front 49

minimum price set by gov for a good or service

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price floor

Front 50

minimum price for employers to play for an hour of labor

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minimum wage

Front 51

quantity of goods a firm has on hand

Back 51

inventory

Front 52

financial & opportunity costs that consumers pay in searching for a product or service

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Search Costs

Front 53

sudden shortage of a good... gas wheat

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supply shock

Front 54

system of allocating scarce goods & services using criteria other than price

Back 54

Rationing

Front 55

conducts business without gov control on price or quantity

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Black Market

Front 56

direct exchange of one set of goods and services for another

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barter

Front 57

When a consumer is able and willing to buy a good or service, he or she creates what?

Back 57

demand

Front 58

What are inferior goods?

Back 58

Good that falls in demand when an income increases

Front 59

How is the future price related to current demand?

Back 59

If the price is expected to rise then current demand will rise

Front 60

What does it mean when the demand for a product is inelastic?

Back 60

A price increase doesnt have any impact on buying habits

Front 61

What kind of table lists the quantity of a good that a person will buy at different prices?

Back 61

Demand Schedule

Front 62

What is the basic principle of the law of demand?

Back 62

when a goods price is lower ppl will buy more of it

Front 63

What kind of changes would be expected in the demand of a country that has a growing population?

Back 63

a rise in demand for shelter

Front 64

A shift in the demand curve means what?

Back 64

change in demand @ every price

Front 65

When the price rises, what happens to income?

Back 65

it buys less

Front 66

Give an example of lower production costs brought about the use of technology.

Back 66

use of email to replace slower surface mail

Front 67

What factors influence elasticity and inelasticity of demand?

Back 67

time, income level, level or price

Front 68

What are fixed costs and examples?

Back 68

costs that dont change... rent, insurance, taxes

Front 69

Advances in production, such as a new technology, can do what for a good?

Back 69

transform it from an expensive luxury to a mid priced good

Front 70

Equillibrium in a market means what?

Back 70

point @ which Supply & demand come together or are equal

Front 71

LIST all determinants of supply

Back 71

1) change in resource cost

2) change in technology

3)change in taxes or subsidies

4) change in # of supplies

Front 72

LIST all determinants of Demand

Back 72

1) change in # of buyers

2) change in buyers taste

3) change in income

4) change in a price or a substiute or complementary good