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econ micro > chap 4 market forces of supply and demand > Flashcards

chap 4 market forces of supply and demand Flashcards

1
Q

law of supply

A

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

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2
Q

inferior good

A

a good for which, other things being equal, an increase in income leads to a decrease in demand

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3
Q

law of supply and demand

A

the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance

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4
Q

complements

A

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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5
Q

demand schedule

A

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

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6
Q

market

A

a group of buyers and sellers of a particular good or service

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7
Q

substitutes

A

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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8
Q

law of demand

A

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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9
Q

demand curve

A

a graph of the relationship between the price of a good and the quantity demanded

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10
Q

shortage

A

a situation in which quantity demanded is greater than quantity supplied

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11
Q

supply curve

A

a graph of the relationship between the price of a good and the quantity supplied

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12
Q

equilibrium price

A

the price that balances quantity supplied and quantity demanded

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13
Q

quantity demanded

A

the amount of a good that buyers are willing and able to purchase

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14
Q

surplus

A

a situation in which quantity supplied is greater than quantity demanded

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15
Q

quantity supplied

A

the amount of a good that sellers are willing and able to sell

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16
Q

normal good

A

a good for which, other things being equal, an increase in income leads to an increase in demand

17
Q

equilibrium quantity

A

the quantity supplied and the quantity demanded at the equilibrium price

18
Q

competitive market

A

a market in which there are many buyers and many sellers so that each has a negligible impact on the market price

19
Q

supply schedule

A

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

20
Q

equilibrium

A

a situation in which the market price has reached the level at which quantity supplied equals quantity demanded

econ micro (4 decks)

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