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22 Cards in this Set
- Front
- Back
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PRICE |
The amount of money a buyer has to give up in order to acquire something |
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COST |
The payment to factor inputs in production |
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MARKET |
A group of buyers and sellers of a particular good or service who come together to agree a price for exchange |
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COMPETITION |
A market situation when two or more firms are rivals for consumers |
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QUANTITY SUPPLIED |
The amount of a good that sellers are willing and able to sell |
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LAW OF SUPPLY |
The claim that, other things being equal, the quantity supplied of a good rises when its price rises |
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SUPPLY SCHEDULE |
A table that shows the relationship between the price of a good and the quantity supplied |
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SUPPLY CURVE |
A graph of the relationship between the price of a good and the quantity supplied |
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QUANTITY DEMANDED |
The amount of a good buyers are willing and able to purchase at different prices |
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LAW OF DEMAND |
The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises |
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DEMAND SCHEDULE |
A table that shows the relationship between the price of a good and the quantity demanded |
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DEMAND CURVE |
A graph of the relationship between the price if a good and the quantity demanded |
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NORMAL GOOD |
A good for which, other things being equal, an increase in income leads to an increase in demand |
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INFERIOR GOOD |
A good dor which, other things being equal, an increase in income leads to a decrease in demand |
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SUBSTITUTES |
Two goods for which an increase in the price of one leads to an increase in the demand for the other |
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COMPLEMENTS |
Two goods for which an increase in the price of one leads to a decrease in the demand for the other |
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MARKET EQUILIBRIUM |
A situation in which the price has reaches the level where quantity supplied equals quantity demanded |
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EQUILIBRIUM OR CLEARING PRICE |
The price that balances quantity supplies and quantity demanded |
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EQUILIBRIUM QUANTITY |
The quantity supplied and the quantity demanded at the equilibrium price |
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SURPLUS |
A situation in which quantity supplied is greater than quantity demanded |
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SHORTAGE |
A situation in which quantity demanded is greater than quantity supplied |
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LAW OF SUPPLY AND DEMAND |
The claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance |
