Chapter 4 - The Market Forces Of Supply And Demand

Front 1

a group of buyers and sellers of a particular product

Back 1

market

Front 2

all goods exactly the same, numerous buyers and sellers

Back 2

perfectly competitive

Front 3

buyers and sellers so numerous that no one can affect market price

Back 3

each is a price taker

Front 4

households _____ goods and services

Back 4

demand

Front 5

firms _____ goods and service

Back 5

supply

Front 6

is the amount of the goods that buyers are willing and able to purchase

Back 6

quantity demanded

Front 7

the claim that the quantity demanded of a good falls when the price of the good rises, other things equal

Back 7

law of demand

Front 8

a table that shows the relationship between the price of a good and the quantity demanded

Back 8

demand schedule

Front 9

determinants of demand

Back 9

own price, income, wealth, related products prices, tastes and preferences, expectations about future, and number/demographics of consumers

Front 10

shows how price affects quantity demanded

Back 10

demand curve

Front 11

a movement along the demand curve is an increase or a decrease in the

Back 11

quantity demanded

Front 12

a shift of the demand curve is an increase or a decrease

Back 12

in demand

Front 13

an increase in demand

Back 13

means a rightward shift of the demand curve

Front 14

demand for a ______ is positively related to income

Back 14

normal good

Front 15

in crease in income shifts D curve to the

Back 15

right

Front 16

demand for an _________ is negatively related to income

Back 16

inferior good

Front 17

an increase in income shifts D curves to the

Back 17

left

Front 18

two goods are ________ if an increase in the price of one causes an increase in demand for the other

Back 18

substitutes

Front 19

two goods are ________ if an increase in the price of one causes a fall in demand for the other

Back 19

complements

Front 20

anything that causes a shift in tasters ________ a good will increase demand for that good and shifts its D curve to the ______

Back 20

toward; right

Front 21

increase in buyers ________ quantity demanded at each price shifts D curve the the __________

Back 21

increases; right

Front 22

the _______________ of any good is the amount that sellers are willing and able to sell

Back 22

quantity supplied

Front 23

the claim that the quantity supplied of a good rises when the price of the good rises, other things equal

Back 23

law of supply

Front 24

cost of production, the prices of related goods and services, producer expectations, and the number of producers

Back 24

supply shifters

Front 25

a table that shows the relationship between the price of a good and the quantity supplied

Back 25

supply schedule

Front 26

a movement along the supply curve is an increase or a _______ in the quantity supplied

Back 26

decrease

Front 27

a shift of the supply curve is

Back 27

an increase of a decrease in supply

Front 28

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

Back 28

fall in input prices

Front 29

determines how much inputs are required to produce a unit of output

Back 29

technology

Front 30

has the same effect as a fall in input prices, shifts S curve to the right

Back 30

cost-saving technological improvement

Front 31

an increase in the number of sellers

Back 31

increases the quantity supplied at each price

Front 32

in a competitive market: when the quantity demanded of a good equals the quantity supplied of that good

Back 32

equilibrium