Term
|
Definition
| The relationship between a good's price and the amount that people are willing to buy. |
|
|
Term
|
Definition
| The relationship between a good's price and the amount that producers are willing to pay. |
|
|
Term
|
Definition
| Value that is directly related to the benefits their owners receive through their use. |
|
|
Term
| Value in Exchange (Can also be called Trading Value) |
|
Definition
| What a particular good is worth in exchange for some other good. |
|
|
Term
|
Definition
| The amount of money that a buyer pays the seller for a particular good. |
|
|
Term
|
Definition
| Those prices at which goods can be sold in an open market with many potential sellers and buyers. |
|
|
Term
| Diminishing Marginal Utility |
|
Definition
| As one's supply of a good or service increases, the satisfaction derived from each additional unit tends to decrease. |
|
|
Term
|
Definition
| The amount of satisfaction that results from a one unit increase of a product, tends to become smaller with each additional unit. |
|
|
Term
|
Definition
| Total amount of satisfaction that results from possessing a particular amount of a good. |
|
|
Term
|
Definition
| The free market principle stating that as the price of a good increases, the quantity demanded decreases, assuming other factors remain equal; As the price of a good falls, the quantity rises. |
|
|
Term
|
Definition
| When the price of a good falls, consumers tend to buy more of that good or of other items because they can do so without giving up anything. |
|
|
Term
|
Definition
| Indicates that people tend to substitute less expensive goods for one whose prices have risen. |
|
|
Term
|
Definition
| A list of numbers that compares price with quantity demand. |
|
|
Term
|
Definition
| A graphic representation of the quantity of goods purchased at different prices. |
|
|
Term
|
Definition
| "Other things being Equal" |
|
|
Term
|
Definition
| A good whose demand is directly related to consumers incomes. |
|
|
Term
|
Definition
| Demand for these items decreases as consumer's incomes increase, and vise versa. |
|
|
Term
|
Definition
| A good capable of being used in place of another. |
|
|
Term
|
Definition
| A good often used in conjuction with another. |
|
|
Term
|
Definition
| Results of changes in any of the five factors and they cause the whole demand curve to shift to the left or right. |
|
|
Term
| Change in Quantity Demand |
|
Definition
| Is represented by any specific point along a demand curve; it is influenced by price. |
|
|
Term
|
Definition
| The direct relationship between the price of a good and the amount that suppliers will make available. |
|
|
Term
|
Definition
| List of numbers that compares prices with quantity supplied. |
|
|
Term
|
Definition
| A graphic representation of the quantity of goods supplied at different prices. |
|
|
Term
|
Definition
| The point at which quantity demanded and quantity supplied are equal. |
|
|
Term
|
Definition
| The quantity demanded exceeds the quantity supplied at a given price. |
|
|
Term
|
Definition
| Quantity supplied of a good is greater than the quantity demanded at a given price. |
|
|
Term
| Price Elasticity of Demand |
|
Definition
| If prices go up, people will buy less. |
|
|
Term
|
Definition
| When consumers will pay very high prices for a particular commodity because they feel there are no substitutes. |
|
|
Term
|
Definition
| When governments place a limit on how high a producer can charge for his product. |
|
|
Term
|
Definition
| Price levels set above the equilibrium prices. |
|
|
