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;
24 Cards in this Set
- Front
- Back
Ceteris paribus ('all else being equal') |
The requirement that when analysing the relationship between two variables-such as price and quantity demanded-other variables must be held constant. |
|
Competitive market equilibrium |
A market equilibrium with many buyers and sellers |
|
Complements |
Goods and services that are used together |
|
Demand curve |
A curve that shows the relationship between the price of a product and the quantity of the product demanded. |
|
Demand schedule |
A table showing the relationship between the price of a product and the quantity of the product demanded |
|
Demographics |
The characteristics of a population with respect to age, race and gender. |
|
Income effect |
The change in the quantity demanded of a good or service that results from the effect of a change in the good's price on consumer purchasing power. |
|
Inferior good |
A good for which the demand increases as income falls and decreases as income rises. |
|
Law of demand |
Holding everything else constant, when the price of a product falls the quantity demanded of the product will increase, and when the price of a product rises the quantity demanded of the product will decrease. |
|
Law of supply |
Holding everything else constant, increases in the price of a product cause an increase in the quantity supplied, and decreases in the price of a product cause a decrease in the quantity supplied. |
|
Market demand |
The demand by all the consumers of a given good or service. |
|
Market equilibrium |
A situation in which quantity demanded equals quantity supplied. |
|
Market supply |
The supply by all firms of a given good or service. |
|
Normal good |
A good for which the demand increases as income rises and decreases as income falls. |
|
Productivity |
The output produced per unit of input. |
|
Quantity demanded |
The amount of a good or service that a consumer is willing and able to purchase at a given price. |
|
Quantity supplied |
The amount of a good or service that a firm is willing and able to supply at a given price. |
|
Shortage |
A situation in which the quantity demanded is greater than the quantity supplied. |
|
Substitutes |
Goods or services that can be used for same purpose. |
|
Substitution effect |
The change in the quantity demanded of a good or service that results from a change in price, making the good more or less expensive relative to other goods that are substitutes. |
|
Supply curve |
A curve that shows the relationship between the price of a product and the quantity of the product supplied. |
|
Supply schedule |
A table that shows the relationship between the price of a product and the quantity of the product supplied. |
|
Surplus |
A situation in which the quantity supplied is greater than the quantity demanded. |
|
Technological change |
Change in the ability of a firm to produce a given level of output with a given quantity of inputs. |