vocab unit 2 Flashcards
The amount of a good or service that customers are willing and able to purchase at all prices.
demand
The idea that price and quantity demanded of a good or service are inversely related.
law of demand
A shift in the amount of a good or service demanded that is achieved by a change in price.
change in Q-demanded
A shift in the amount of a good or service that is demanded at all prices.
change in demand
Goods or services that are used in place of a different good or service.
substitutes
Goods or services that are used alongside of a different good or service
compliments
The amount of a good or service that businesses are willing and able to sell at all prices
supply
The idea that price and quantity supplied of a good or service are directly related.
law of supply
The amount of a good or service that sellers are willing and able to sell at one specific price
quantity supplied
A shift in the amount of a good or service supplied that is achieved by a change in price.
change in q supplied
A shift in the amount of a good or service that is supplied at all prices.
change in supply
Money given to the sellers of a good or service, typically as an incentive to increase or maintain production levels.
subsidy
The price for a good or service at equilibrium
equilibrium price
The quantity of a good or service available at equilibrium.
equilibrium quantity
A situation in which the quantity supplied of a good or service is greater than the quantity demanded.
surplus
A situation in which the quantity demanded of a good or service is greater than the quantity supplied.
shortage
A maximum price allowed for a good or service.
price ceiling
A minimum price allowed for a good or service.
price floor
A market structure in which many sellers are supplying identical goods or services.
perfect competition
A market structure in which many sellers are supplying goods or services that are different in inconsequential ways.
monopolistic competition
When businesses in a given market compete on style, service or location instead of competing with price.
non price competition
A market structure in which a few sellers control the market for a good or service.
oligopoly
When businesses in a market work together to fix prices to increase their profits.
collusion
A business type in which one person has total control and ownership of the business
sole proprietorship
The amount of responsibility an individual has for the debts of a business.
unlimited liability
A business type in which two or more people share control and/or ownership of the business.
partnership
A business type in which control and ownership of a business is determined through ownership of share of stock.
corporation
Partial ownership of a corporation that allows an investor to participate in the decisions made for that corporation.
stock
When the profits of a corporation are divided up and distributed according to the percentage of the company’s stock owned by an individual.
dividend