| 10719870309 | Market | An institution or mechanism that brings together buyers and sellers of particular goods, services, or resources. An example of a market is a farmer's market.
Related Terms: Supply and Demand |  | 0 |
| 10719870310 | Demand Schedule | A table that compares the price of a product and the quantity demanded.
Related Terms: Supply Schedule, Demand Curve |  | 1 |
| 10719870311 | Law of Demand | All else equal, as price falls, the quantity demanded rises and as price rises, the quantity demanded falls.
Example: If price of computers increase then people will buy less computers.
Related Terms: Demand Schedule, Demand. |  | 2 |
| 10719870312 | Demand | Schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time.
Ex.) Demand shows how much of a product people will buy at various prices.
Related Terms: Law of Demand, Demand Schedule |  | 3 |
| 10719870313 | Quantity Demanded | How much of a product that people are willing to buy.
Related Terms: Demand, Demand Schedule |  | 4 |
| 10719870314 | Demand Curve | A curve that measures quantity demanded and price of a product.
Related Terms: Demand, Law of Demand |  | 5 |
| 10719870315 | Diminishing marginal utility | As one person buys more units of a product, the utility gained per additional unit is diminished.
Ex.)A person buys 3 hamburgers and each additional hamburger after the first gives him less satisfaction.
Related Terms: Utility, Allocative Efficiency |  | 6 |
| 10719870316 | Income Effect | A product's lower price increases the buyer's purchasing power.
Ex.)If Pepsi costs $2 then I can buy more of it than $3 cans of Coke.
Related Terms: Demand, Supply |  | 7 |
| 10719870317 | Substitution Effect | People will buy the lowest priced alternative of a similar group of products.
Ex.) If Pepsi costs less than Coke, then people will buy Pepsi
Related Terms: Demand, Law of Demand |  | 8 |
| 10719870318 | Market Demand | How much an entire consumer population wants a product.
Ex.) Adding up the demands of Bob, John, and Sally results in the market demand
Related Terms: Demand, Demand Curve |  | 9 |
| 10719870319 | Determinants of Demand | Factors other than price that determines the demand for a product.
Ex.) the consumer's personal taste
Related Terms: Demand |  | 10 |
| 10719870320 | Inferior good | A good or service whose consumption declined as income rises, prices remain constant
Ex.)Used Car, Instant Ramen |  | 11 |
| 10719870321 | Normal Goods | Products whose demand varies directly with money income.
Ex.) Old cars, ramen noodles
Related Terms: Demand |  | 12 |
| 10719870322 | Substitute Goods | Good that can be used in place of another.
Ex.) Beef can be a substitute for chicken
Related Terms: Demand | | 13 |
| 10719870323 | Complementary goods | Good that is used together with another good.
Ex.) Headphones complement smart phones
Related Terms: Demand, Substitutes |  | 14 |
| 10719870324 | Change in Demand | A change in the quantity demanded of a good or service at every price shift of the demand curve | | 15 |
| 10719870325 | Change in Supply | A change in specifically of a good that buyers are willing and able to buy |  | 16 |
| 10719870326 | Supply | A schedule showing the amounts of a good or service that sellers will offer at various prices during some period | | 17 |
| 10719870327 | Supply Schedule | A method to show the different amounts of a certain products or them that company would need to supply |  | 18 |
| 10719870328 | Change in Quantity | A change specifically of a good that buyers are willing and able to buy |  | 19 |
| 10719870329 | Surplus | The amount by which the quantity supplied of a product exceeds that quantity demanded at a specific price |  | 20 |
| 10719870330 | Shortage | The amount by quantity demanded of a product exceeds the quantity supplied at the particular | | 21 |
| 10719870331 | Equilibrium Price | The price in competitive market at which the quantity demanded and supplied are equal there is neither a shortage nor a surplus and there is no tendency for price to rise or fall |  | 22 |
| 10719870332 | Equilibrium Quantity | Quantity demanded and supplied at the equilibrium price in a competitive market |  | 23 |
| 10719870333 | Rationing Function of Prices | The ability of market forces in competitive market to equalize demanded and quantity supplied and to eliminate shortages and surpluses |  | 24 |
| 10719870334 | Price Floor | Legally determined price above the equilibrium |  | 25 |
| 10719870335 | Price Ceiling | Legally established maximum price for a good service |  | 26 |
| 10719870336 | Change in Quantity Supplied | A change in the specific quantity of a good that sellers are willing to sell |  | 27 |
| 10719870337 | Determinants Supply | Factors other then price that determines the quantities supplied of a good or service
Ex. Change in Weather
Change in # of Buyers |  | 28 |
| 10719870338 | Supply Curve | A curve that measures quantity supplied and price |  | 29 |
