AP Macroeconomics and AP Microeconomics, Chapter 4 Flashcards

7275770574	market	A group of buyers and sellers of a particular good or service	0
7275773236	competitive market	a market in which there are many buyers and sellers of the same good or service	1
7275776760	quantity demanded	amount of the good that buyers are willing and able to purchase	2
7275780495	law of demand	consumers buy more of a good when its price decreases and less when its price increases	3
7275789241	demand curve	A graph of the relationship between the price of a good and the quantity demanded.	4
7275793720	normal good	a good for which, other things equal, an increase in income leads to an increase in demand	5
7367826972	inferior good	a good for which, other things equal, an increase in income leads to a decrease in demand	6
7275795762	substitutes	goods used in place of each other; an increase in the price of one leads to an increase in the demand for the other	7
7275805712	complements	two goods that are bought and used together; an increase in the price of one leads to a decrease in the demand for the other	8
7275814609	quantity supplied	the amount of a good that sellers are willing and able to sell	9
7275816253	law of supply	producers offer more of a good as its price increases and less as its price falls	10
7275820602	supply curve	a graph of the relationship between the price of a good and the quantity supplied	11
7275822875	equilibrium	The point at which quantity demanded and quantity supplied are equal	12
7275826243	surplus	A situation in which quantity supplied is greater than quantity demanded	13
7275830138	shortage	A situation in which quantity demanded is greater than quantity supplied	14
7275832500	law of supply and demand	the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance	15