Terms : Hide Images
| 53345938 | demand | the desire, willingness, and ability to buy a good or service; schedule or curve | |
| 53345939 | demand schedule | a table that shows the relationship between the price of a good and the quantity demanded | |
| 53345940 | law of demand | economic law that states that consumers buy more of a good when its price decreases and less when its price increases | |
| 53345941 | diminishing marginal utility | successive units of a particular product yield less and less marginal utility | |
| 53345942 | income effect | the change in consumption resulting from a change in real income | |
| 53345943 | substitution effect | when consumers react to an increase in a good's price by consuming less of that good and more of other goods | |
| 53345944 | demand curve | a graph of the relationship between the price of a good and the quantity demanded | |
| 53345945 | determinants of demand | Anything other than price of the current item that influences consumer buying decisions, including income, tastes and preferences, price of related items (substitutes and complements), number of consumers in the market, and expected future price. | |
| 53345946 | change in demand | a change in the quantity demanded of a good or service at every price; a shift of the demand curve to the left or right. | |
| 53345947 | normal goods | Goods for which demand goes up when income is higher and for which demand goes down when income is lower. | |
| 53345948 | inferior goods | goods whose demand varies inversely with money income;, a good or service whose consumption declines as income rises (and conversely), price remaining constant. | |
| 53345949 | substitute good | goods that can be used to replace the purchase of similar goods when prices rise | |
| 53345950 | complementary good | Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely). | |
| 53345951 | consumer expectations | The idea that changes in expectations about the future can change the amount of real output demanded. | |
| 53345952 | change in quantity demanded | movement along the demand curve, from one point to another, due to a change in price | |
| 53345953 | supply schedule | a table that shows the relationship between the price of a good and the quantity supplied | |
| 53345954 | supply | the amount of a product that would be offered for sale at all possible prices that could prevail in the market | |
| 53345955 | law of supply | Tendency of suppliers to offer more of a good at a higher price | |
| 53345956 | supply curve | a graph of the relationship between the price of a good and the quantity supplied | |
| 53345957 | determinants of supply | Anything other than price of the current item that influences production decisions, including cost of raw materials, cost of labor, level of technology used to produce, number of producers in the market, price of related products, and expected future price. | |
| 53345958 | change in quantity supplied | movement from one point to another on a fixed supply curve | |
| 53345959 | change in supply | change in the entire schedule and a shift of the entire curve right or left. cause is a change in one or more determinant of supply. | |
| 53345960 | equilibrium price | the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy | |
| 53345961 | equilibrium quantity | the quantity supplied and the quantity demanded at the equilibrium price | |
| 53345962 | surplus | situation in which quantity demanded is less than quantity supplied | |
| 53345963 | shortage | situation in which quantity demanded is greater than quantity supplied | |
| 53345964 | rationing function of prices | ability of competitive forces of supply and demand to establish a price at which selling and buying decisions are consistent | |
| 53345965 | productive efficiency | the situation in which a good or service is produced at the lowest possible cost | |
| 53345966 | allocative efficiency | the particular mix of goods and services most highly valued by society | |
| 53345967 | price ceiling | a maximum price that can be legally charged for a good or service | |
| 53345968 | price floor | a legal minimum on the price at which a good can be sold |
