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Definition
| A schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices, other things equal. |
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Definition
| Table or graph to show the price per quantity demanded. |
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Definition
| Other things equal, the quantity of a good purchased varies inversely with its price. |
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Term
| Diminishing marginal utility |
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Definition
| As a product's price increases, its utility decreases. As prices decrease, utilities increase. |
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Definition
| Indicates that a lower price increases the purchasing power of a buyer's money income. |
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Definition
| Suggests that at a lower price, buyers have the incentive to substitute what is now a relatively less expensive product for other products that are now relatively more expensive. |
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Definition
| Graphical representation of demand schedule. Shifts due to determinants of demand. |
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Definition
a. Consumer tastes
b. Number of buyers in the market
c. Consumer income
d. prices of substitute or complementary goods
e. consumer expectations |
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Definition
| Goods whose demand varies directly with money income |
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Definition
| Goods whose demand varies inversely with money income |
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Definition
| A good that can be used in place of another good. |
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Definition
| A good that is used together with another good. |
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Term
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Definition
| A change in the demand schedule or a shift in the demand curve, caused by determinants of demand. |
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Term
| change in quantity demanded |
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Definition
| A movement from one point to another on a fixed demand curve. |
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Term
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Definition
| A schedule or curve showing the various amounts of a product that producers are willing and able to make for sale at each of a series of possible prices during a specific period. |
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Definition
| A table that shows quantities of a product that will be supplied at various prices, other things equal. |
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Term
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Definition
| As price rises, the quantity supplied rises; as price falls, the quantity of supplied falls. (less profit to be made, so less are produced) |
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Term
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Definition
| Graphical representation of supply schedule |
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Definition
a. resource prices
b. technology
c. taxes and subsidies
d. prices of other goods
e. producer expectations
f. number of other sellers in the market |
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Term
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Definition
| A change in the supply schedule or a shift in the curve. |
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Term
| change in quantity supplied |
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Definition
| A movement from one point to another on a fixed supply curve. |
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Term
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Definition
| The price where intentions of buyers and sellers match. |
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Term
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Definition
| A quantity where intentions of buyers and sellers match. |
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Definition
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Term
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Definition
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Term
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Definition
| The production of any particular good in the least costly way. |
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Definition
| The particular mix of goods and services most highly valued by society, minimum-cost production assumed. |
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Term
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Definition
| Maximum legal price a seller may charge for a product or service. |
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Term
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Definition
| Minimum legal price a seller may charge for a product or service. |
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Term
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Definition
Determinant of demand.
Increase: Right
Decrease: Left |
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Term
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Definition
Determinant of demand.
Increase: Right
Decrease: Left |
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Term
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Definition
Determinant of demand.
NORMAL GOODS
Increase: Right
Decrease: Left
INFERIOR GOODS
Increase: Left
Decrease: Right |
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Term
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Definition
Determinant of demand.
SUBSTITUTE GOOD
Price increase in one good will increase the demand for its substitute.
COMPLEMENTARY GOOD
Increase in price for one good will increase the demand for its complement. |
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Term
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Definition
Determinant of demand.
May cause increase or decrease in demand curve. (Some buyers may rush to buy the good deals, or they may |
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Term
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Definition
Determinant of supply.
Increase: Left
Decrease: Right |
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Term
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Definition
Determinant of supply.
Increase: Right
Decrease: Left |
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Term
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Definition
Determinant of supply.
TAXES
Increase: Left
Decrease: Right
Subsidies opposite |
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Term
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Definition
Determinant of supply.
Increase: Left
Decrease: Right |
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Term
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Definition
Determinant of supply.
Varies by case. |
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Term
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Definition
| Determinant of supply. Increase: Right Decrease: Left |
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Term
Changes in demand/supply
and their effect on price/quantity |
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Definition
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