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Details Title: Chapter Three:Supply/Demand Description: Supply and Demand Total Flash Cards: 34 Created: 10/18/2007 15:51:55	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Aggregation Definition The process of combinging distinct thinks into a single whole Term Imperefectly Competative market Definition A market in which a single biyer or seller has the power to influence the price of the product Term Perfectly competative market Definition A market in which no buyer/seller has any power over price Term Households quantity demanded Definition The specific amount a household would chose to buy over some time period, given (1) a particular price, (2) all other contraints on the household Term Quantity Demand Definition The amount of a good that all buyers in a market would choose to buy during a period of time guven their constraints Term Law of Demand Definition As the price increases the quanity demanded decresases Term Ceteris paribus Definition LAtin fot "all else remain equal" Term Demand schedual Definition A list showing the quantities of a goood that consumers would choose to purchase at difference prices with all other variables held constand Term Demand Curve Definition The graphical depictionn of a demand scedual: a curve showing the quantity of a good or service demanded at vairous prices with all other cariable held constant Term Change in Quanity Demanded Definition A movement along a demand curve in response to a change in price Term Change in demand Definition A shift of a demand curve in response to a change in some variable other than price Term Income Definition The amount of money that a perosn or firm earns over a given year Term Normal good Definition A good that people demand more of as theri income rises Term Inferior Good Definition A good that people demand less of as theri income rises Term Wealth Definition The total value of everything a person or firm owns, at a point in time, minus the total value of everthing owed Term Substitue Definition A good that can be used in place of some other good and that fulfuills the same purpose Term Complement Definition a good that is used together with some other good Term Law of Supply Definition As the price of a good increases, the quanity supplied increases Term Supply Schedule Definition A list showing the quantities of a good or service that firms woudl choose to produce and sell at different pruices with all other things equal Term Supply curve Definition A graphical depiction of a supply scdual, a curve showing the quantiy of a good/service supplied at various prices withh all other variables held constant Term Change in quanity supplied Definition A movemetn aling a supply curve in response to a change in price Term Change in supply Definition A shift of a supply curve in response to some variable other than price Term Alternate goods Definition Other goods that a firm could produce, using some of the same types of inputs as the good in question Term Alternate market Definition A market other than the one being analyed in which the same good could be sold Term Equilibrium price Definition The market price that one achienved remains constnt unil either the demand curve or supply curve shifts Term Equilibrium quantity Definition The market quality bought and sold per period that, once anchieved remains constant unit either the demand curve or supply curve shifts Term Excess demand Definition As a given price the amount by which quantiy demanded exceed quantiy supplied Term Excess Supply Definition At a given price the amount by which quanitity supplied exceeds quantity demanded Term Economic growth Definition The Increase in our production of goods and services that occurs over long periods of time Term Business cycle Definition Flucations in real GDP around its long-term growth trend Term Expansion Definition A period of increasing real GDP Term Recession Definition A period of increasing real GDP Term Depression Definition An unusually severe Term Definition