Term
| what's a competitive market? |
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Definition
| the name of a market in which there are many buyers and sellers of the same good or service |
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Term
| what's the supply and demand model? |
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Definition
| the name of the model of how a competitive market works |
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Term
| what's a demand schedule? |
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Definition
| the name of agraphical representation of the demand schedule; shows how much of a good or service customers want to buy at any given price |
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Term
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Definition
| a graphical representation of the demand sched. It shows how much of a good or service consumers want to buy@any given price |
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Term
| what's the quantity demanded? |
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Definition
| the name of the actual amount customers are willing to buy at a specific price |
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Term
| what's the law of demand? |
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Definition
| the law that says a higher price for a good, other things equal, leads people to demand a smaller quantity of the good |
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Term
| what's a shift of the demand curve? |
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Definition
| the name of a change in the quantity demanded at any given price, (demand curve moves to new position) |
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Term
| what's movement along the demand curve? |
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Definition
| the name of the change in the quantity demanded of a good that is the result of the good's price |
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Term
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Definition
| what two goods are if a fall in the price of one makes consumers less willing to buy the other |
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Term
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Definition
| what two goods are if the fall in the price of one makes people more willing to buy the other good |
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Term
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Definition
| a good that's demand increases when income increases |
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Term
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Definition
| a good that's demand decreases when income increases |
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Term
| wat is the quantity supplied? |
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Definition
| the actual amount of a good or service ppl are willing to sell at some specific price |
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Term
| what's a supply schedule? |
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Definition
| what shows how much of a good or service would be supplied at different prices |
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Term
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Definition
| what shows graphically how much of a good or service ppl are willing to sell at any given price |
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Term
| what is a shift of the supply curve? |
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Definition
| a change in the quantity supplied of a good or service at any given price. It is represented by the change of the original supply curve to a new position |
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Term
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Definition
| a good that is used to produce another good |
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Term
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Definition
| an upper limit on a quantity that can be bought or sold set by the gov |
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Term
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Definition
| the diff between the demand price and supply price at the quota limit; is equal to the market price of the license when the license is traded |
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Term
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Definition
| a government-set maximum price that sellers are allowed to charge for a good; a form of price control |
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Term
| how does an increase in supply affect the supply curve and equilibrium? |
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Definition
| supply curve moves to right, equilibrium price down but price moves up |
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Term
| often fluctuations in markets involve shifts of both the supply and demand curves, how are these predictable? |
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Definition
both shift in same direction--change in quantity is predictable but price is not
when opposite--change in prices is predictable but quantity is not
when simultaneous shifts of d&s--the greater shifter has a greater effect on price and quantity |
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Term
| what is a monopoly and a natural monopoly? |
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Definition
| A monopoly is a firm which is the only one producing and selling a particular product. A natural monopoly is a monopoly in an industry in which it is most efficient (involving the lowest long-run average cost) for production to be concentrated in a single firm |
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