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AGEC 200 > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

quantity demanded

A

the amount of good or service that consumers want to purchase during some time period

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2
Q

demand schedule

A

a table showing the relationship between quantity demanded and the price of a commodity, other things being equal

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3
Q

demand curve

A

graphical representation of the relationship between quantity demanded and the price of a commodity, other things being equal

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4
Q

demand

A

the entire relationship between the quantity of a commodity that buyers want to purchase and the price of that commodity, other things being equal

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5
Q

substitutes in consumption

A

goods that can be used in place of another good to satisfy similar needs or desires

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6
Q

complements in consumption

A

goods that tend to be consumed together

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7
Q

change in demand

A

change in the quantity demanded at each possible price of the commodity, represented by a shift in the WHOLE demand curve

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8
Q

change in quantity demanded

A

change in the specific quantity of the good demanded, represented by a change from one POINT on a demand curve to another point, either on the original demand curve or on a new one

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9
Q

quantity supplied

A

the amount of a commodity that producers want to sell during some time period

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10
Q

supply schedule

A

a table showing the relationship between quantity supplied and the price of a commodity, other things being equal

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11
Q

supply curve

A

the graphical representation of the relationship between quantity supplied and the price of a commodity, other things being equal

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12
Q

supply

A

the entire relationship between the quantity of some commodity that producers wish to sell and the price of that commodity other things being equal

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13
Q

change in supply

A

a change in the quantity supplied at each possible price of the commodity, represented by a shift in the whole supply curve

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14
Q

change in quantity supplied

A

a change in the specific quantity supplied, represented by a change from one point on a supply curve to another point, either on the original supply curve or on a new one

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15
Q

market

A

any situation in which buyers and sellers can negotiate the exchange of goods or services

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16
Q

excess demand

A

a situation in which at the given price, quantity demanded exceeds quantity supplied

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17
Q

excess supply

A

a situation in which, at a given price, quantity supplied exceeds quantity demanded

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18
Q

equilibrium price

A

the price at which quantity demanded equals quantity supplied. also called the market-clearing price

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19
Q

disequilibrium price

A

price at which quantity demanded does not equal quantity supplied

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20
Q

disequilibrium

A

a situation in a market in which there is excess demand or excess supply

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21
Q

comparative statics

A

the derivation of predictions by analyzing the effect of a change in some exogenous variable on the equilibrium

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22
Q

absolute price

A

the amount of money that must be spent to acquire one unit of a commodity (aka money price)

23
Q

relative price

A

the ratio of the money price of one commodity to the money price of another commodity; ratio of 2 absolute prices

24
Q

what factors influence quantity demanded? (6)

A
  • product’s price
  • consumers income
  • prices of other products
  • tastes
  • population
  • expectations about the future
25
Q

the price of a product and the quantity demanded are related (positively/negatively), other things being equal

A

negatively

26
Q

the demand curve shows the relationship between the _______ _______ and_____

A

quantity demanded; price

27
Q

true or false: when the price is held constant, there can be a change in quantity demanded

A

true; the whole demand curve can shift and result in a new point being made

28
Q

the price of a product and the quantity supplied are related (positively/negatively)

A

positively

29
Q

the supply curve represents the relationship between _____ _____ and _____

A

quantity supplied; price

30
Q

what will changing any variable other than the product’s price do?

A

shift the curve to a new position

31
Q

a demand curve will shift to the RIGHT when there is an (increase/decrease) in demand

A

increase

32
Q

when the whole demand curve moves, this is a ________

A

change in demand

33
Q

when a point along a demand curve moves, this is a ______

A

change in quantity demanded

34
Q

what factors influence quantity supplied?

A
  • product’s price
  • cost of inputs
  • number of suppliers
  • government taxes or subsidies
  • state of technology
  • prices of other products
35
Q

demand curve goes (up/down); supply curve goes (up/down)

A

demand: down
supply: up

36
Q

what does ceteris paribus mean?

A

all other variables are held equal

37
Q

quantity _____ or quantity _____ is used to refer to actual purchases

A

quantity bought or quantity exchanged

38
Q

distinguish between flow and stock variables

A

time

  • flow is per unit of time (x amount of eggs sold, how long did it take?); rate
  • stock addresses a point in time (x amount of time given, how many eggs sold?); position
39
Q

what would shift the demand curve to the right regarding income?

A

increase in income

40
Q

what would shift the demand curve to the right regarding substitute products?

A

increase in price of substitute product

41
Q

what would shift the demand curve to the right regarding complement products?

A

decrease in price of complement product

42
Q

what would shift the demand curve to the right regarding taste?

A

change in taste in favor of a product

43
Q

what would shift the demand curve to the right regarding population?

A

increase in population

44
Q

what would shift the supply curve to the right regarding inputs?

A

decrease in the price of inputs

45
Q

what would shift the supply curve to the right regarding technology?

A

innovation that decreases the price of inputs

46
Q

what will shift the supply curve to the right regarding gov’t taxes/subsidies?

A

increase in subsidy, decrease in tax

47
Q

what will shift the supply curve to the right regarding prices of substitutes?

A

decrease in the market price of the substitute (the item of focus will be more profitable)

48
Q

what will shift the supply curve to the right regarding prices of complements?

A

increase in market price price of the complement

49
Q

what will shift the supply curve to the right regarding number of suppliers

A

increasing the number of suppliers

50
Q

what causes excess demand?

A

shortage of supply

51
Q

what causes excess supply?

A

surplus in supply

52
Q

excess supply causes (upward/downward) pressure on price

A

downward

53
Q

excess demand causes (upward/downward) pressure on price

A

upward

AGEC 200 (9 decks)

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