Macroeconomics Ch. 3: Supply And Demand

Front 1

grp of buyers and sellers w/ the potential to trade w/ each other

Back 1

market

Front 2

model that shows how goods, resources, and dollar payments flow btwn household and firms

Back 2

circular flow

Front 3

markets in which firms sell goods and services to households

Back 3

product markets

Front 4

markets in which households that own resources sell them to firms

Back 4

resource markets

Front 5

markets in which no buyers or sellers have the power to influence price

Back 5

perfectly competetive markets

Front 6

amt of a good that all buyers in a market would choose to buy during a per of time, given their constraints

Back 6

quantity demanded

Front 7

changes along the demand curve

Back 7

changes in quantity demanded

Front 8

as the price of a good increases the quantity demanded decreases

Back 8

law of demand

Front 9

due to change in diff variables

Back 9

change in demand

Front 10

causes movement along the demand curve

Back 10

change in the price of a good

Front 11

Factors that shift the demand curve

Back 11

1) Income
2) Wealth
3) Prices of related goods
4) Population
5) Expected price
6) Tastes/preferences

Front 12

good that people demand more of as their income rises

Back 12

normal good

Front 13

good that people demand less of as their income rises

Back 13

inferior good

Front 14

own-owed

Back 14

wealth

Front 15

good that can be used in place of some other good that fulfills similar purpose

Back 15

substitute

Front 16

good that is used together w/ some other good

Back 16

compliment

Front 17

increase in income will shift curve right for this type of good

Back 17

normal good

Front 18

increase in income will shift curve left for this type of good

Back 18

inferior good

Front 19

increse in wealth will shift curve right for this type of good

Back 19

normal good

Front 20

increase in wealth will shift curve left for this type of good

Back 20

inferior good

Front 21

rise in the price of a substitute

Back 21

demand curve shifts right

Front 22

fall in the price of a substitute

Back 22

demand curve shifts left

Front 23

rise in price of a compliment

Back 23

shifts demand curve left

Front 24

1) population increase
2) rise in the price of s substitute
3) expected rise in price
4) increase in income (in relation to a normal good)
5) increase in wealth (in relation to a normal good)

Back 24

demand curve shifts right

Front 25

1) fall in the price of a substitute
2) expected fall in price of the good
3) increase in income (in relation to an inferior good
4) increase in wealth (in realtion to an inferior good)

Back 25

demand curve shifts left

Front 26

expectation that price of the good will rise

Back 26

demand curve shifts right

Front 27

expectation that the price of the good will fall

Back 27

demand curve shifts left

Front 28

goods used for a longer amt of time

Back 28

consumer durables

Front 29

during a recession they are the first to decline

Back 29

consumer durables

Front 30

# of units of a good that all sellers in the market would choose to sell over a time period, given the constraints the face

Back 30

quantity supplied

Front 31

changes along the supply curve

Back 31

changes in quantity supplied

Front 32

as the price of a good increases, the quantity supplied increases; positively related

Back 32

law of supply

Front 33

Cause shift of supply curve

Back 33

1) Input prices
2) Technology
3) Prices and Profitability of alternate goods/markets
4) expectations
5) # of firms
6) weather and natural events

Front 34

other goods and services used in the development of a good or service

Back 34

input prices

Front 35

fall in the price of input(s)

Back 35

shifts supply curve right

Front 36

rise in the price of input(s)

Back 36

shifts supply curve left

Front 37

other goods that a firm could produce, suing some of the same inputs

Back 37

alternate goods

Front 38

rise in price of alternative goods

Back 38

suply curve shifts left

Front 39

fall in the price of alternative goods

Back 39

supply curve shifts right

Front 40

increase in the number of firms (sellers

Back 40

supply curve shifts right

Front 41

expectation of future price rise

Back 41

supply curve shifts left

Front 42

expectation of future price drop

Back 42

supply cruve shifts right

Front 43

market quantity bought and solder per period that, once achieved, remains constant, until either the demand curve or supply shifts

Back 43

equilibrium quantity

Front 44

Qd > Qs

Back 44

excess demand

Front 45

Qs > Qd

Back 45

excess supply

Front 46

price ceiling set below the equilibrium

Back 46

creates excess demand

Front 47

price ceiling set above equilibrium

Back 47

creates excess supply