CH 3 Flashcards

1
Q

other things being equal

A

ceteris paribus

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2
Q

goods that are often used together so that consumption of one good tends to enhance consumption of the other

A

complements

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3
Q

the extra benefit consumers receive from buying a good or service, measured by what the individuals would have been willing to pay minus the amount that they actually paid

A

consumer surplus

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4
Q

the loss in social surplus that occurs when a market produces an inefficient quantity

A

deadweight loss

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5
Q

the relationship between price and the quantity demanded of a certain good or service

A

demand

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6
Q

a graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis

A

demand curve

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7
Q

a table that shows a range of prices for a certain good or service and the quantity demanded at each price

A

demand schedule

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8
Q

the situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause price or quantity to change

A

equilibrium

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9
Q

the price where quantity demanded is equal to quantity supplied

A

equilibrium price

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10
Q

the quantity at which quantity demanded and quantity supplied are equal for a certain price level

A

equilibrium quantity

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11
Q

at the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage

A

excess demand

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12
Q

at the existing price, quantity supplied exceeds the quantity demanded; also called a surplus

A

excess supply

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13
Q

the resources such as labor, materials, and machinery that are used to produce goods and services; also called inputs

A

factors of production

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14
Q

a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls

A

inferior good

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15
Q

the resources such as labor, materials, and machinery that are used to produce goods and services; also called factors of production

A

inputs

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16
Q

the common relationship that a higher price leads to a lower quantity demanded of a certain good or service and a lower price leads to a higher quantity demanded, while all other variables are held constant

A

law of demand

17
Q

the common relationship that a higher price leads to a greater quantity supplied and a lower price leads to a lower quantity supplied, while all other variables are held constant

A

law of supply

18
Q

a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls

A

normal good

19
Q

what a buyer pays for a unit of the specific good or service

A

price

20
Q

a legal maximum price

A

price ceiling

21
Q

government laws to regulate prices instead of letting market forces determine prices

A

price control

22
Q

a legal minimum price

A

price floor

23
Q

the extra benefit producers receive from selling a good or service, measured by the price the producer actually received minus the price the producer would have been willing to accept

A

producer surplus

24
Q

the total number of units of a good or service consumers are willing to purchase at a given price

A

quantity demanded

25
Q

the total number of units of a good or service producers are willing to sell at a given price

A

quantity supplied

26
Q

when a change in some economic factor (other than price) causes a different quantity to be demanded at every price

A

shift in demand

27
Q

when a change in some economic factor (other than price) causes a different quantity to be supplied at every price

A

shift in supply

28
Q

at the existing price, the quantity demanded exceeds the quantity supplied; also called excess demand

A

shortage

29
Q

the sum of consumer surplus and producer surplus

A

social surplus

30
Q

a good that can replace another to some extent, so that greater consumption of one good can mean less of the other

A

substitute

31
Q

the relationship between price and the quantity supplied of a certain good or service

A

supply

32
Q

a line that shows the relationship between price and quantity supplied on a graph, with quantity supplied on the horizontal axis and price on the vertical axis

A

supply curve

33
Q

a table that shows a range of prices for a good or service and the quantity supplied at each price

A

supply schedule

34
Q

at the existing price, quantity supplied exceeds the quantity demanded; also called excess supply

A

surplus