Ch.4 Vocab Flashcards
Law of Demand
Quantity demanded rises as price falls if other things stay constant
Demand curve
The graphic representation of the relationship between price and quantity demanded
Demand
A schedule of quantities of a good that will be bought per unit of time at various prices
Quantity demanded
A specific amount that will be demanded per unit of time at a specific price
Movement along a demand curve
The graphical representation of the effect of a change in price on the quantity demanded
Shift in demand
The graphical representation of the effect of anything other than price on demand
Market demand curve
The horizontal sum of all individual demand curves
Law of supply
Quantity supplied rises as price rises
Supply curve
The graphical representation of the relationship between price and quantity supplied
Supply
A schedule of quantities a seller is willing to sell per unit of time at various prices
Quantity supplied
A specific amount that will be supplied at a specific price
Movement along a supply curve
The graphical representation of the effect of a change in price on the quantity supplied
Shift in supply
The graphical representation of the effect of a change in a factor other than price on supply
Market supply curve
The horizontal sum of all individual supply curves
Equilibrium
A concept in which opposing dynamic forces cancel each other out
