Terms : Hide Images
| 473997505 | Law of Demand (L.O.D.) | Quantity demanded rises as prices fall, other thongs constant. (vice versa/falls and rises) | |
| 473997506 | Demand Curve | The graphic representation of the relationship between price and quantity demanded. Slopes downward b/c when price goes up, quantity demand goes down. Price and quantity inversely related. | |
| 473997507 | Demand | Refers to a schedule of quantities of goods that will be bought per unit of time at various prices, other things constant. | |
| 473997508 | Quantity Demanded | Refers to a specific amount that will be demanded per unit of time at a specific price, other things constant. | |
| 473997509 | Movement Along a Demand Curve (M.A.D.C.) | The graphical representation of the effect of a change in price on the quantity demanded. Change in anything besides price that affects demand changes entire demand curve. | |
| 473997510 | Shift in Demand | The graphical representation of the effect of anything other than price on demand. The factors are: 1) Society's income. 2) The prices of other goods. 3) Tastes. 4) Expectations. 5) Taxes on and subsidies to consumers. | |
| 473997511 | Market Demand Curve (M.D.C.) | The horizontal sum of all individual demand curves. | |
| 473997512 | Law of Supply (L.O.S.) | Quantity supplied rises as price rises, other things constant. (vice versa/fall) | |
| 473997513 | Supply Curve | The graphical representation of the relationship between price and quantity supplied. Slopes upward. The quantity supplied varied directly-in the same direction-with the price. | |
| 473997514 | Supply | Refers to a schedule of quantities a seller is willing to sell per unit of time at various prices, other things constant. | |
| 473997515 | Quantity Supplied | Refers to a specific amount that will be supplied at a specific price. | |
| 473997516 | Movement Along a Supply Curve (M.A.S.C.) | The graphical representation of the effect of a change in price on the quantity of supplied. | |
| 473997517 | Shift in Supply | The graphical representation of the effect of a change in a factor other than price on supply. The factors are: 1) Price of Inputs 2) Technology 3) Expectations 4) Taxes and Subsidies | |
| 473997518 | Market Supply Curve (M.S.C.) | The horizontal sum of all individual supply curves. | |
| 473997519 | Equilibrium | A concept in which opposing dynamic forces cancel each other out. Ex: A hot-air balloon is in equilibrium when the upward force exerted by the hot-air in the balloon equals the downward pressure exerted on the balloon by gravity. Equilibrium means the upward pressure on price is exactly offset by the downward pressure on price. | |
| 473997520 | Equilibrium Quantity | The amount bought and sold at the equilibrium price. | |
| 473997521 | Equilibrium Price | The price toward which the invisible hand drives the market. At the market equilibrium, quantity demanded equals quantity supplied. | |
| 473997522 | Excess Supply (a surplus) | Quantity supplied is greater than quantity demanded. | |
| 473997523 | Excess Demand (a shortage) | Quantity demanded is greater than quantity supplied. | |
| 473997524 | Fallacy of Composition | The false assumption that what is true for part will also be true for the whole. |
