AP Micro: UNIT 2 Flashcards

9603356914	Demand	quantities of goods that consumers are willing and able to buy at different prices	0
9603361541	Law of Demand	the inverse relationship between price and quantity demanded	1
9603374684	Quantity Demanded	specific amount demanded at at specific price	2
9603404437	Change in Demand	shift of the demand curve	3
9603408342	Change in quantity demanded	movement along the curve that results from a change in price	4
9603425609	Law of Diminishing Marginal Utility	the more you consume of a product the less satisfaction you get from each new consumed item	5
9603439801	Demand Curve	graphical representation of a demand schedule	6
9603451959	Ceteris Paribus	all other things held constant	7
9603464621	Determinants of Demand	TRIBE (name them!!)	8
9603472134	Substitutes	goods used in place of one another	9
9603474866	Complements	two goods that are bought and used together	10
9603485976	Normal Goods	as income increases, demand increases	11
9603489935	Inferior goods	as income increases, demand decreases	12
9603515613	Supply	different quantities of a good that sellers are willing and able to produce at different prices	13
9603522845	Law of Supply	the direct relationship between price and quantity supplied	14
9603532652	Change in Supply	a shift of the supply curve	15
9603536998	Change in quantity supplied		16
9604047851	Determinants of Supply	ROTTEN (Name them)	17
9604057965	Surplus	excess supply	18
9604057966	Shortage	excess demand	19
9604067122	Voluntary Exchange	buyers and sellers freely and willingly completing market transactions for mutual benefit	20
9604079827	Consumer Surplus	difference between what a consumer is willing to pay and what they actually pay	21
9604104278	Producer Surplus	difference between the price a seller received and how much they were willing to sell it for	22
9604132643	Price Ceiling	maximum legal price a seller can charge for a product	23
9604140169	Equilibrium	economic situation where no individual would be better off doing something different	24
9604151819	Market Clearing Price	equilibrium price = equilibrium quantity	25
9605440585	Price Floor	minimum legal price a seller can sell a product for	26
9605451181	Deadweight Loss	loss in total surplus	27
9605458440	Elasticity	shows how sensitive quantity is to a change in price	28
9605468320	Elastic	a change in price causes a significant change in quantity	29
9605471675	Inelastic	a change in prices causes a small change in quantity	30
9605476507	Unit Elastic	a change in price causes a proportional change in quantity	31
9605486395	Total Revenue	Price x Quantity	32
9605489372	Cross-Price elasticity	shows how sensitive a product is to a change int he price of another good	33
9605501382	Income Elasticity	shows how sensitive a product is to a change in income	34
9605513002	Tariff	tax on imports	35
9605513003	Quota	a limit on the number of imports	36
9605519998	Excise Taxes	a per unit tax on producers	37
9605530347	Tax Incidence	determine who pays more of a tax, consumers or producers	38
9605548623	Utility Maximizing Rule	consumer's money should be spent so that the marginal utility per dollar of each good equals each other	39
9605581266	Marginal Utility	change in utility generated by consuming one additional unit of a good or service	40