Krugman for AP
Module 6
Supply and Demand: Supply and Equilibrium
Terms : Hide Images
| 6350904078 | quantity supplied | the actual amount of a good or service producers are willing and able to sell at some specific price | 0 | |
| 6350904079 | supply schedule | a table that shows how much of a good or service producers will supply at different prices | 1 | |
| 6350904080 | supply curve | a graphical representation of the supply schedule showing the relationship between quantity supplied and price | 2 | |
| 6350904081 | law of supply | the principle that more will be supplied at higher prices and less will be supplied at lower prices; there is a direct relationship between price and quantity supplied | 3 | |
| 6350904082 | change in supply | a change in the quantity supplied of a good or service at every price; a shift of the supply curve left or right | 4 | |
| 6350904083 | change in quantity supplied | a movement along the supply curve that occurs to a response to a change in price | 5 | |
| 6350904084 | input | anything that is used to produce a good or service | 6 | |
| 6350904085 | substitutes in production | goods that are produced from the same raw materials; a high price of one leads to a decrease in the supply of the other | 7 | |
| 6350904086 | complements in production | goods that are produced as by-products from producing another good; a high price for one leads to an increase in the supply of the other | 8 | |
| 6350904087 | individual supply curve | illustrates the relationship between quantity supplied and price for an individual producer | 9 | |
| 6350904088 | market supply curve | the horizontal sum of all individual supply curves | 10 | |
| 6350904089 | equilibrium | An economic situation is in equilibrium when no individual would be better off doing something else. | 11 | |
| 6350904090 | equilibrium price | price where quantity supplied equals quantity demanded; also called market-clearing price | 12 | |
| 6350904091 | equilibrium quantity | the quantity supplied and the quantity demanded at the equilibrium price | 13 | |
| 6350904092 | surplus | a situation in which quantity supplied is greater than quantity demanded; this occurs when price is above equilibrium; also known as excess supply | 14 | |
| 6350904093 | shortage | a situation in which quantity demanded is greater than quantity supplied; this occurs when price is below equilibrium; also known as excess demand | 15 |
