Quiz 2 terms

Question 1

a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is gold

Answer 1

competitive market

Question 2

a shift of the demand curve, which changes the quantity demanded at any given price

Answer 2

change in demand

Question 3

a shift of the supply curve, which changes the quantity supplied at any given price

Answer 3

change in supply

Question 4

pairs of goods for which a rise in the price of one good leads to a decrease in the demand for the other good

Answer 4

complements

Question 5

a list/table showing how much of a good or service consumers will want to buy at different prices

Answer 5

demand schedule

Question 6

a graphical representation of the demand schedule, showing the relationship between quantity demanded and price

Answer 6

demand curve

Question 7

an economic situation in which no individual would be better off doing something different

Answer 7

equilibrium

Question 8

the price at which the market is in equilibrium - the quantity of a good/service demanded equals the quantity supplied

Answer 8

equilibrium price

market-clearing price

Question 9

a graphical representation of the relationship between quantity demanded and price for an individual consumer

Answer 9

individual demand curve

Question 10

a graphical representation of the relationship between quantity supplied and price for an individual producer

Answer 10

individual supply curve

Question 11

a good/service used to produce another good/service

Answer 11

input

Question 12

a good for which a rise in income decreases demand for the good

Answer 12

inferior good

Question 13

the principle that a higher price for a good/service, ceteris paribus, leads people to demand a smaller quantity of that good/service

Answer 13

law of demand

Question 14

ceteris paribus, the price and quantity supplies of a good are positively related

Answer 14

law of supply

Question 15

a change in the quantity demanded of a good that results from a change in the price of that good

Answer 15

movement along the demand curve

Question 16

a change in the quantity supplies of a good that results from a change in the price of that good

Answer 16

movement along the supply curve

Question 17

a good for which a rise in income increases the demand for that good - the “normal” case

Answer 17

normal good

Question 18

a model of how a competitive market works

Answer 18

supply and demand model

Question 19

pairs of goods for which a rise in price of one of the goods leads to an increase in the demand for the other good

Answer 19

substitutes

Question 20

a list/table showing how much of a good/service producers will supply at different prices

Answer 20

supply schedule

Question 21

a graphical representation of the supply schedule, showing the relationship between quantity supplies and price

Answer 21

supply curve

Question 22

the actual amount of a good/service consumers are willing/able to buy at some specific price

Answer 22

quantity demanded

Question 23

the actual amount of a good/service producers are willing to sell at some specific price

Answer 23

quantity supplied