Chapter One Flashcards
Quantity demanded
The amount of a good that a given individual or group of individuals will choose to consume at a given price.
Law of demand
The observation that when the price of a good goes up,people will buy less of that good.
However, all else must be equal.
Demand
A family of numbers that lists the quantity demanded corresponding to each possible price.
Demand
A family of numbers that lists the quantity demanded corresponding to each possible price.
Demand curve
A graph illustrating demand, with prices on the vertical axis and quantities demanded on the horizontal axis.
A change in price leads to a change in quantity demanded. A change in price _______ ______ lead to change in demand.
Does not
When price goes up, the quantity demanded goes down. Slope curves:
Downward.
Fall in demand
A decision by demanders to buy a smaller quantity at each given price.
Rise in demand
A decision by demanders to buy a larger quantity at each given price.
A change in anything other than _______ leads to change in demand.
Price.
A sales tax causes demand curve to shift _________ parallel to itself by the amount of the tax.
Downward
Econometrics
A family of statistical techniques used by economics.
Law of supply
The observation that when the price of a good goes up, the quantity supplies goes up.
Quantity supplied
The amount of a good that suppliers will provide at a given price.
Supply
A family of numbers giving the quantities supplied at each possible price.
