question
microeconomics ic
answer
economic theory that deals with behavior and decision making by small units such as individuals and firms
question
macroeconomics ic
answer
part of economic theory dealing with the economy as a whole and decision making by large units such s governments and unions
question
demand ic
answer
desire, ability, and willingness to buy a product
question
law of demand ic
answer
rule stating that more will be demanded at lower prices and less at higher prices inverse relationship
question
demand schedule ic
answer
listing showing the quantity demanded at all possible prices that might prevail in the market place at a given time
question
demand curve ic
answer
graph showing the quantity demanded at each and every possible price the may prevail
question
income effect ic
answer
that portion of a change in quantity demanded caused by a change in a consumer's real income when the price of a product changes
question
substitution effect ic
answer
that portion of a change in quantity demanded to a change in the relative price of a product
question
substitutes ic
answer
competing products that can be used in a place of one another increase in the price for one increases the demand for the other
question
complements ic
answer
product that increases the value of other products increase in price of one leads to decrease in demand of both
question
elasticity ic
answer
measure of responsiveness that tells us how a dependent variable such as quantity responds to a change in an independent variable such as price
question
inelasticity ic
answer
the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)
question
unit elasticity ic
answer
where a change in the independent variable generates proportional change of the dependent variable
question
demand elasticity ic
answer
measure of responsiveness relating change in quantity demanded to a change in price
question
law of supply ic
answer
rule stating that more will be offered for sale at higher prices than at lower prices
question
supply schedule ic
answer
tabular listing showing the quantities produced or offered for sale at each and every possible price in the market
question
supply curve ic
answer
a graph of the relationship between the price of a good and the quantity supplied
question
supply elasticity ic
answer
responsiveness of quantity supplied to a change in price
question
rebate ic
answer
partial refund of the orginale price of a product. rationing
question
law of variable proportions ic
answer
rule stating that short run output will change as one input is varied while others are held constant
question
price ceiling ic
answer
rent control
question
price floor
answer
minimum wage
question
marginal utility
answer
satisfaction or usefulness obtained from acquiring one more unit of a product
question
marginal cost
answer
extra expense of producing one additional unit of production
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
