question
market
answer
group of buyers and sellers of a particular product
question
competitive market
answer
one with many buyers and sellers, each has a negligible effect on price
question
perfectly competitive market
answer
all goods are exactly the same
buyers and sellers have no affect on market price "price taker"
buyers and sellers have no affect on market price "price taker"
question
quantity demanded
answer
the amount of the good that buyers are willing and able to purchase
question
law of demand
answer
the claim that the quantity demanded of a good falls when the price of the good rises, other things equal
question
demand schedule
answer
a table that shows the relationship between the price of a good and the quantity demanded
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demand curve shift to right
answer
number of buyers
increases
increases
question
demand curve shift to right
answer
demand for normal good
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demand curve shift to left
answer
demand for inferior good
question
number of buyers, income, prices of related goods, tastes, expectations
answer
shifts in demand curve
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substitutes
answer
two goods in which an increase in the price of one causes an increase in demand for the other
question
complements
answer
two goods in which an increase in the price of one causes a fall in demand for the other
question
quantity supplied
answer
the amount that sellers are willing and able to sell
question
law of supply
answer
the claim that the quantity supplied of a good rises when the price of the good rises, other things equal
question
supply schedule
answer
table that shows the relationship between the price of a good and the quantity supplied
question
input prices, technology, number of sellers, expectations
answer
supply curve shifters
question
equilibrium
answer
the price where quantity supplied equals quantity demanded
question
surplus
answer
when quantity supplied is greater than quantity demanded
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shortage
answer
when quantity demanded is greater than quantity supplied
question
change in supply
answer
a shift in the S curve occurs when a non-price determinant of supply changes
question
change in the quantity supplied
answer
a movement along a fixed S curve, occurs when P changes
question
change in demand
answer
a shift in the D curve occurs when a non-price determinant of demand changes
question
change in quantity demanded
answer
a movement along a fixed D curve, occurs when P changes
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