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32 Cards in this Set
- Front
- Back
a group of buyers and sellers of a particular product |
market |
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all goods exactly the same, numerous buyers and sellers |
perfectly competitive |
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buyers and sellers so numerous that no one can affect market price |
each is a price taker |
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households _____ goods and services |
demand |
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firms _____ goods and service |
supply |
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is the amount of the goods that buyers are willing and able to purchase |
quantity demanded |
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the claim that the quantity demanded of a good falls when the price of the good rises, other things equal |
law of demand |
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a table that shows the relationship between the price of a good and the quantity demanded |
demand schedule |
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determinants of demand |
own price, income, wealth, related products prices, tastes and preferences, expectations about future, and number/demographics of consumers |
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shows how price affects quantity demanded |
demand curve |
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a movement along the demand curve is an increase or a decrease in the |
quantity demanded |
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a shift of the demand curve is an increase or a decrease |
in demand |
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an increase in demand |
means a rightward shift of the demand curve |
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demand for a ______ is positively related to income |
normal good |
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in crease in income shifts D curve to the |
right |
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demand for an _________ is negatively related to income |
inferior good |
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an increase in income shifts D curves to the |
left |
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two goods are ________ if an increase in the price of one causes an increase in demand for the other |
substitutes |
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two goods are ________ if an increase in the price of one causes a fall in demand for the other |
complements |
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anything that causes a shift in tasters ________ a good will increase demand for that good and shifts its D curve to the ______ |
toward; right |
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increase in buyers ________ quantity demanded at each price shifts D curve the the __________ |
increases; right |
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the _______________ of any good is the amount that sellers are willing and able to sell |
quantity supplied |
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the claim that the quantity supplied of a good rises when the price of the good rises, other things equal |
law of supply |
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cost of production, the prices of related goods and services, producer expectations, and the number of producers |
supply shifters |
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a table that shows the relationship between the price of a good and the quantity supplied |
supply schedule |
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a movement along the supply curve is an increase or a _______ in the quantity supplied |
decrease |
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a shift of the supply curve is |
an increase of a decrease in supply |
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makes production more profitable at each output price, so firms supply a larger quntity at each price, and the S curve shifts to the right |
fall in input prices |
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determines how much inputs are required to produce a unit of output |
technology |
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has the same effect as a fall in input prices, shifts S curve to the right |
cost-saving technological improvement |
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an increase in the number of sellers |
increases the quantity supplied at each price |
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in a competitive market: when the quantity demanded of a good equals the quantity supplied of that good |
equilibrium |