Unit 2 Test Study Guide Flashcards
People who buy or use goods and services to satisfy their wants and needs.
consumer
A combination of quantities that someone would be wiling to buy over a range of possible prices at a given moment.
demand
A condition or state in which economic forces are balanced.
equilibrium
The highest legal price that can be charged for a product.
Price Ceiling
A curtail (reduction) of the freedom of market participants or grants special privileges.
Regulation
The lowest legal price that can be paid in the market for goods and services, labor, or financial capital.
Price Floor
A person or organization that makes goods or provides service.
Consumer Sovereignty
Theoretical market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products and have freedom of entry and exit.
Perfect Competition
Market structure having all conditions of pure competition except for identical products.
- A form of imperfect competition.
Monopolistic Competition
A person or organization that makes goods or provides service.
Producer
Amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point in time.
Supply
A measure of responsiveness that tells us how a dependent variable, such as quantity demand or quantity supplied, responds to a change in an independent variable such as price.
Elasticity
Money flows from producers to workers as wages, and flows back to producers as payment for products.
Circular Flow
Market structure in which a few large sellers dominate and have the ability oi affect prices in the industry.
- A form of imperfect competition.
Oligopoly
Market structure characterized by a single producer.
Monopoly
