Module 2 Economic Analysis- Vocab Flashcards
Change in demand
An upward or downward shift of the entire demand curve to a new position in the market diagram.
Change in quantity demanded
Movement along the demand curve as a result of a change in price.
Change in supply
An upward or downward shift of the entire supply curve to a new position in the market diagram.
Change in quantity supplied
Movement along the supply curve as a result of a change in price.
Complement good
A good used with another good.
Input cost
The price of a factor of a production such as materials, labor, machinery, or capital.
Inferior Good
A good for which demand decreases when income increases.
Law of demand
The economic principle that a change in price is inversely related to quantity demanded.
Market
A graphical depiction of the exchange of a good.
Normal Good
A good for which demand increases when income increases.
Regulation
Rules imposed by government intended to modify the behavior of individuals and firms.
Subsidy
Direct payments to suppliers by a government to pay some or all of a firm’s cost to produce a product.
Substitute good
A good used in place of another good.
