Details Title: CHAP 3 ECON 2020 Description: Final Exam Flashcards Total Flash Cards: 24 Created: 05/04/2009 13:59:56		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Demand Schedule Definition A table showing the relationship between the price of a product and the quantity of the product demanded. Term Quantity Demanded Definition The amount of a good or service that a consumer is willing and able to purchase at a given price. Term Demand Curve Definition A curve that shows the relationship between the price of a product and the quantity of the product demanded. Term Market Demand Definition The demand by all the consumers of a given good or service. Term Law of Demand Definition When the price of a good increases, demand decreases, and visa verse, ceteris paribus. Term Substitution Effect Definition The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods that are substitutes. Term Income Effect Definition The change in the quantity demanded of a good that results from the effect of a change in the good's price on consumers' purchasing power. Term Ceteris Paribus Definition All else equal Term Income Definition The amount of income affects the ability and willingness to buy a good. Term Normal Good Definition As income increases, demand increases, and visa verse, ceteris paribus. Term Inferior Good Definition Demand increases as income decreases, and visa verse, ceteris paribus. Term Substitutes Definition Goods and services that can be used for the same purpose. Term Complements Definition Products that are used together. Term Demographics Definition The characteristics of a population with respect to age, race, and gender. Term Quantity Supplied Definition The amount of a good or service that a firm is willing and able to supply at a given price. Term Supply Schedule Definition A table that shows the relationship between the price of a product and the quantity of the product supplied. Term Supply Curve Definition A curve that shows the relationship between the price of a product and the quantity of the product supplied. Term Law of Supply Definition An increase in price causes an increase in the quantity supplied, and visa verse, ceteris paribus. Term Technological Change Definition A positive or negative change in the ability of a firm to produce a given level of output with a given quantity of inputs. Term Input Definition Anything used in the production of a good or service. Term Market Equilibrium Definition A situation in which quantity demanded equals quantity supplied. Term Competitive Market Equilibrium Definition A market equilibrium with many buyers and many sellers. Term Surplus Definition A situation in which the quantity supplied is greater than the quantity demanded. Term Shortage Definition A situation in which the quantity demanded is greater than the quantity supplied.