Chapter 2 Flashcards
What is demand?
Demand is the relationship between the various possible prices of a product and the qauntities of that product consumers are willing to purchase.
What is quantiity demanded?
Quantity demanded is the amount of a product consumers are willing to purchase at each price.
What is the law of demand?
The law of demand states that there is an inverse relationship between a product’s quanitity demanded and its price.
What is a demand schedule?
A demand schedule is a table that shows possible combinations of prices and quanitites demand of a product.
What is a demand curve?
A demand curve is a graph that expresses possible combinations of prices and quanitites demanded of a product.
What is change in quantity demanded?
Change in quantity demanded is the effect of a price change on quantity demanded.
What are demand factors?
Demand factors are factors that can cause an increase or a decrease in a product’s demand.
What is a incease in demand?
A increase in demand is an increase in the quanitity demanded of a product at all prices.
What is a decrease in demand?
A decrease in demand is a decrease in the quanitity demanded of a product at all prices.
What are normal products?
Normal products are products whose demand changes directly with income.
What are inferiror products?
Inferior products are products whose demand changes inversely with income.
What are substitute products?
Subsititute products are products that can be consumed in place of one another.
What are complementary products?
Complementary products are products that are consumed together.
What is supply?
Supply is a relationship between the various possible prices of a product and the quanitites of the product that businesses are willing to supply.
What is quantiity supplied?
Quanitity supplied is the amount of a product businesses are willing to supply at each price.
What is market supply?
Market supply is the sum of all producers quantities supplied at each price.
Law of supply?
The law of supply states that there is a direct relationship between a product’s quantity supplied and its price.
What is supply schedule?
A supply schedule is a table that shows possible combinations of a prices and quanitites suppplied of a product.
What is a supply curve?
A supply curve is a graph that expresses possible combinations of prices and quanitites supplied of a product.
What is a change in quanitity supplied?
A change in quantity supplied is the effect of a price change on quantity supplied.
What are supply factors?
Supply factors are factors that can cause an increase or decrease in a product’s supply.
What is a increase in supply?
An increase in supply is an increase in the quantily supplied of a product at all prices.
What is a decrease in supply?
A decrease in wuantitiy supplied of a product at all prices.
What is market equilibrium?
Market equlilubrum is the stable point at which demand and supply curves intersect.
What is a surplus?
A surplus is an excess of quanitity supplied over quantiity demanded.
What is a shrotage?
A shortage is an excess of quanitity demanded over quanitity supplied.
