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AP Micro: UNIT 2 Flashcards

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9603356914Demandquantities of goods that consumers are willing and able to buy at different prices0
9603361541Law of Demandthe inverse relationship between price and quantity demanded1
9603374684Quantity Demandedspecific amount demanded at at specific price2
9603404437Change in Demandshift of the demand curve3
9603408342Change in quantity demandedmovement along the curve that results from a change in price4
9603425609Law of Diminishing Marginal Utilitythe more you consume of a product the less satisfaction you get from each new consumed item5
9603439801Demand Curvegraphical representation of a demand schedule6
9603451959Ceteris Paribusall other things held constant7
9603464621Determinants of DemandTRIBE (name them!!)8
9603472134Substitutesgoods used in place of one another9
9603474866Complementstwo goods that are bought and used together10
9603485976Normal Goodsas income increases, demand increases11
9603489935Inferior goodsas income increases, demand decreases12
9603515613Supplydifferent quantities of a good that sellers are willing and able to produce at different prices13
9603522845Law of Supplythe direct relationship between price and quantity supplied14
9603532652Change in Supplya shift of the supply curve15
9603536998Change in quantity supplied16
9604047851Determinants of SupplyROTTEN (Name them)17
9604057965Surplusexcess supply18
9604057966Shortageexcess demand19
9604067122Voluntary Exchangebuyers and sellers freely and willingly completing market transactions for mutual benefit20
9604079827Consumer Surplusdifference between what a consumer is willing to pay and what they actually pay21
9604104278Producer Surplusdifference between the price a seller received and how much they were willing to sell it for22
9604132643Price Ceilingmaximum legal price a seller can charge for a product23
9604140169Equilibriumeconomic situation where no individual would be better off doing something different24
9604151819Market Clearing Priceequilibrium price = equilibrium quantity25
9605440585Price Floorminimum legal price a seller can sell a product for26
9605451181Deadweight Lossloss in total surplus27
9605458440Elasticityshows how sensitive quantity is to a change in price28
9605468320Elastica change in price causes a significant change in quantity29
9605471675Inelastica change in prices causes a small change in quantity30
9605476507Unit Elastica change in price causes a proportional change in quantity31
9605486395Total RevenuePrice x Quantity32
9605489372Cross-Price elasticityshows how sensitive a product is to a change int he price of another good33
9605501382Income Elasticityshows how sensitive a product is to a change in income34
9605513002Tarifftax on imports35
9605513003Quotaa limit on the number of imports36
9605519998Excise Taxesa per unit tax on producers37
9605530347Tax Incidencedetermine who pays more of a tax, consumers or producers38
9605548623Utility Maximizing Ruleconsumer's money should be spent so that the marginal utility per dollar of each good equals each other39
9605581266Marginal Utilitychange in utility generated by consuming one additional unit of a good or service40

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