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Law of Demand
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The observation that when the price of a good goes up, people will buy less of that good
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Quantity Demanded
answer
The amount of a good that a given individual or group of individuals will choose to consume at a given price
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Demand
answer
A family of numbers that lists the quantity demanded corresponding to each possible price
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Demand Curve
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A graph illustrating demand, with prices on the vertical axis and quantities demanded on the horizontal axis
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Fall in Demand
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A decision by demanders to buy a smaller quantity at each given price
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Rise in Demand
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A decision by demanders to buy a larger quantity at each given price
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Sales Tax
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In this book, a tax that is paid directly by consumers to the government. Other texts use this phrase in different ways
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Econometrics
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A family of statistical techniques used by economists
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Elasticity
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The ration between two points ( percentage change in quantity)/(percentage change in price)
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Law of Supply
answer
The observation that when the price of a good goes up, the quantity supplied goes up
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Quantity Supplied
answer
The amount of a good that suppliers will provide at a given price
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Supply
answer
A family of numbers giving the quantities supplied at each possible price
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Rise in Supply
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An increase in the quantities that suppliers will provide at each given price
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Fall in Supply
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A decrease in the quantities that suppliers will provide at each given price
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Excise Tax
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In this book, a tax that is paid directly by suppliers to the government
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Equilibrium
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The point where the supply and demand curves intersect
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Satisfied
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Able to behave as one wants to, taking market prices as given
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Price to Demanders
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Price plus sales tax
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Price to Suppliers
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Price minus excise tax
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Economic Incidence
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The division of a tax burden to who actually pays the tax
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Legal Incidence
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The division of a tax burden to who is required under the law to pay the tax
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