Chapter 4 Vocab Flashcards

1
Q

Demand

A

schedule of quantities of a good that will be bought per unit of time at various prices, other things constant.

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2
Q

Demand Curve

A

graphical representation between price and quantity demanded.

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3
Q

equilibrium

A

a concept in which opposing dynamic forces cancel each other out.

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4
Q

equilibrium price

A

price toward which the invisible hand drives the market.

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5
Q

equilibrium quantity

A

the amount bought and sold at the equilibrium price.

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6
Q

excess demand

A

shortage, quantity demanded is greater than quantity supplied.

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7
Q

excess supply

A

surplus, quantity supplied is greater than quantity demanded.

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8
Q

fallacy of composition

A

the false assumption that what is true for a part will also be true for a whole.

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9
Q

law of demand

A

quantity demanded rises and price falls, other things constant.

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10
Q

law of supply

A

quantity supplied rises and price rises, other things constant

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11
Q

market demand curve

A

horizontal sum of all individual demand curves.

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12
Q

market supply curve

A

horizontal sum of all individual supply curves.

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13
Q

movement along a demand curve

A

graphical representation of the effect of a change in price on the quantity demanded

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14
Q

movement along a supply curve

A

the graphical representation of the effect of a change in price on the quantity supplied.

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15
Q

quantity demanded

A

specific amount that will be demanded per unit of time at a specific price, other things constant.

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16
Q

quantity supplied

A

specific amount that will be supplied at a specific price.

17
Q

shift in demand

A

the graphical representation of the effect of anything other than price on demand.

18
Q

supply

A

a schedule of quantities a seller is willing to sell per unit of time at various prices, other things constant.

19
Q

shift in supply

A

the graphical representation of the effect of a change in a factor other than price on supply.

20
Q

supply curve

A

graphical representation of the relationship between price and quantity supplied.