AP Microeconomics Module 5 Flashcards

5868057885	competitive market	a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold	0
5868057886	supply and demand model	A model of how a competitive market works	1
5868057887	demand schedule	Data that shows how much of a good or service consumers will be willing and able to buy at different prices	2
5868057888	quantity demanded	The actual amount of a good or service consumers are willing and able to buy at some specific price	3
5868057889	demand curve	A graphical representation of the demand schedule. it shows the relationship between quantity demanded and price	4
5868057890	law of demand	A higher price for a good or service, all other things being equal, leads people to demand a smaller quantity of that good or service	5
5868057891	change in demand	A shift of the demand curve, which changes the quantity demanded at any given price	6
5868057892	movement along the demand curve	A change in the quantity demanded of a good that is the result of a change in that good's price	7
5868057893	substitutes	Two goods that could be used for the same purpose (example: Chicken and Prok).Iif the price of one good rises and leads to an increase in demand for the other good	8
5868057894	complements	Two goods that are normally used together (example: Bread and Sandwich Meat). If the price of one good rises and leads to a decrease in the demand for the other good	9
5868057895	normal good	A good that consumers what more of when thier income rises (example: T-Bone Steaks). Thus when income increases the demand for a good also increases	10
5868057896	inferior good	A good that consumers what less of when their income rise. Then when a drop in income occurs this good experiences a increase in demand (example: Rusty Old Cars).	11
5868057897	individual demand curve	illustrates the relationship between quantity demanded and price for an individual consumer	12