Quiz 2 terms Flashcards
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
competitive market
a shift of the demand curve, which changes the quantity demanded at any given price
change in demand
a shift of the supply curve, which changes the quantity supplied at any given price
change in supply
pairs of goods for which a rise in the price of one good leads to a decrease in the demand for the other good
complements
a list/table showing how much of a good or service consumers will want to buy at different prices
demand schedule
a graphical representation of the demand schedule, showing the relationship between quantity demanded and price
demand curve
an economic situation in which no individual would be better off doing something different
equilibrium
the price at which the market is in equilibrium - the quantity of a good/service demanded equals the quantity supplied
equilibrium price
market-clearing price
a graphical representation of the relationship between quantity demanded and price for an individual consumer
individual demand curve
a graphical representation of the relationship between quantity supplied and price for an individual producer
individual supply curve
a good/service used to produce another good/service
input
a good for which a rise in income decreases demand for the good
inferior good
the principle that a higher price for a good/service, ceteris paribus, leads people to demand a smaller quantity of that good/service
law of demand
ceteris paribus, the price and quantity supplies of a good are positively related
law of supply
a change in the quantity demanded of a good that results from a change in the price of that good
movement along the demand curve
a change in the quantity supplies of a good that results from a change in the price of that good
movement along the supply curve
a good for which a rise in income increases the demand for that good - the “normal” case
normal good
a model of how a competitive market works
supply and demand model
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
substitutes
a list/table showing how much of a good/service producers will supply at different prices
supply schedule
a graphical representation of the supply schedule, showing the relationship between quantity supplies and price
supply curve
the actual amount of a good/service consumers are willing/able to buy at some specific price
quantity demanded
the actual amount of a good/service producers are willing to sell at some specific price
quantity supplied
