AP Economics: Demand, Supply, and Market Equilibrium Flashcards

1702121347	Demand	A 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	0
1702121348	Demand Schedule	A representation of demand in table form	1
1702121349	Law of Demand	As price falls, the quantity demanded rises, and as price rises, the quantity demanded falls	2
1702121350	Diminishing Marginal Utility	In any specific time period, each buyer of a product will derive less satisfaction (or benefit, or utility) from each successive unit of the product consumed	3
1702121351	Income Effect	A lower price increases the purchasing power of a buyer's money income, enabling the buyer to purchase more of the product than before	4
1702121352	Substitution Effect	At a lower price buyers have the incentive to substitute what is now a less expensive product for similar products for similar products that are now relatively more expensive	5
1702121353	Demand Curve	A curve representing data on a demand schedule, has a downward slope	6
1702121354	Determinants of Demand	Consumers' tastes, the number of buyers in the market, consumers' incomes, the prices of related goods, and consumer expectations	7
1702121355	Normal Goods	Products whose demand varies directly with money income (superior goods)	8
1702121356	Inferior Goods	Goods whose demand varies inversely with money income	9
1702121357	Substitute Good	A good that can be used in place of another good	10
1702121358	Complementary Good	A good that is used together with another good	11
1702121359	Change in Demand	A shift of the demand curve to the right (increase in demand) or to the left (decrease in demand)	12
1702121360	Change in Quantity Demanded	A movement from one point to another point - from one price-quantity combination to another- on a fixed demand schedule or demand curve	13
1702121361	Supply	Schedule or curve showing the varoius amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period	14
1702121362	Supply Schedule	Table shwoing the quantities of a product that will be supplied at various prices, other things equal	15
1702121363	Law of Supply	As price rises, the quantity supplies rises; as price falls the quantity supplied falls	16
1702121364	Supply Curve	Graphical representation of a supply schedule, has an upward slope	17
1702121365	Determinants of Supply	Resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the numer of sellers in the market	18
1702121366	Change in Supply	An increase in supply shifts the curve to the right; a decrease in supply shifts it to the left	19
1702121367	Change in Quantity Supplied	A movement from one point to another on a fixed supply curve. The cause of such a movement is a change in the price of the specific product being considered.	20
1702121368	Equilibrium Price	The price where the intentions of buyers and seller match.	21
1702121369	Equilibrium Quantity	The quantity demanded and quantity supplied at the equilibrium price in a competitive market	22
1702121370	Surplus	Excess supply	23
1702121371	Shortage	Excess demand	24
1702121372	Productive Efficiency	The production of any particular good in the least costly way	25
1702121373	Allocative Efficiency	The particular mix of goods and services most highly valued by society (minimum cost production assumed).	26
1702121374	Price Ceiling	Sets the maximum legal price a seller may charge for a product or service	27
1702121375	Price Floor	A minimum price fixed by the government	28