Term
|
Definition
| the principle that there is an inverse relationship between the price of the good and the quantity buyers are willing to purchase ceteris paribus |
|
|
Term
|
Definition
| is formed by the line connecting the possible prices and quantities purchased. You can find the quantity demanded at any price by moving along the curve |
|
|
Term
|
Definition
| demand is a curve or schedule showing the various quantities of a product consumers are willing to purchase at possible prices during a specified period of time ceteris paribus |
|
|
Term
| change in quantity demanded |
|
Definition
a movement between points along a stationary demand curve ceteris paribus
results solely from change in the price |
|
|
Term
| nonprice determinants of demand |
|
Definition
factors that aren't the price but that influence the position of the demand curve
number of buyers, tastes and preferences, income, expectations of future changes in prices income and availability of goods, prices of related goods |
|
|
Term
| on a demand curve graph a decrease in prices causes |
|
Definition
| an increase in the quantity demanded (movement along the demand curve) |
|
|
Term
| on a demand curve graph a change in a nonprice determinant causes |
|
Definition
| an increase in demand (shifting the demand curve) |
|
|
Term
|
Definition
| any good for which there is a direct relationship between changes in income and its demand curve |
|
|
Term
|
Definition
| any good for which there is an inverse relationship between changes in income and its demand curve |
|
|
Term
|
Definition
| a good that competes with another good for consumer purchase. as a result there is a direct relationship between a price change for one good and the demand for its competitor good |
|
|
Term
|
Definition
| a good that is jointly consumed with another good. as a result there is an inverse relationship between the price change for one good and the demand for the go together good |
|
|
Term
|
Definition
the relationship between ranges of possible prices and quantities supplied
the principle that there is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period ceteris paribus |
|
|
Term
|
Definition
| a curve or schedule showing the various quantities of a product sellers are willing to produce and offer for sale at possible prices during a specific time, ceteris paribus |
|
|
Term
| change in quantity supplied |
|
Definition
| a movement between points along a stationary supply curve, ceteris paribus |
|
|
Term
|
Definition
| an increase or a decrease in the quantity supplied at each possible price. An increase in supply is a rightward shift in the entire supply curve. A decrease in supply is a leftward shift in the entire supply curve |
|
|
Term
| on a supply curve graph an increase in price leads to what |
|
Definition
| an increase in quantity supplied, a shift on the supply curve |
|
|
Term
| on a supply curve graph a change in nonprice determinants leads to what |
|
Definition
| an increase in supply, a shift of the supply curve |
|
|
Term
| nonprice determinants of supply |
|
Definition
| number of sellers, technology, resource prices (price of the resources used), taxes and subsidies, expectations of producers, prices of other goods the firm could produce |
|
|
Term
|
Definition
| any arrangement in which buyers and sellers interact to determine the price and quantity of goods and services exchanged |
|
|
Term
|
Definition
| a market condition existing at any price where the quantity supplied is greater than the quantity demanded |
|
|
Term
|
Definition
| a market condition existing at any price where the quantity supplied is less than the quantity demanded |
|
|
Term
|
Definition
| a market condition that occurs at any price and quantity where the quantity demanded and the quantity supplied are equal |
|
|
Term
|
Definition
| a mechanism that uses the forces of supply and demand to create an equilibrium through rising and falling prices |
|
|
Term
| what states that there is an inverse relationship between the price and the quantity demanded ceteris paribus |
|
Definition
|
|
Term
| a movement along a stationary demand curve caused by a change in price is called a |
|
Definition
| change in quantity demanded |
|
|
Term
| this is a good consumers buy more of when their income increases |
|
Definition
|
|
Term
| this states that there is a direct relationship between the price and the quantity supplied, ceteris paribus |
|
Definition
|
|
Term
| a movement along a stationary supply curve in response to a change in price is called a |
|
Definition
| change in quantity supplied |
|
|
Term
| when the price of a good is greater than the equilibrium price there is an exvess quantity supplied called a |
|
Definition
|
|
Term
| the unique price and quantity established at the intersection of the supply and demand curve is called |
|
Definition
|
|
Term
| this is the supply and demand mechanism which establishes equilibrium through the ability of prices to rise and fall |
|
Definition
|
|
Term
| this is something that has an inverse relationship between changes in income and its demand curve |
|
Definition
|
|
Term
| this competes with another good for consumer purchases. As a result there is a direct relationship between price change for one good and the demand for its competitor good |
|
Definition
|
|
Term
| the principle that there is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus |
|
Definition
|
|
Term
| any arrangement in which buyers and sellers interact to determine the price and quantity of goods and services exchanged |
|
Definition
|
|
Term
| this is jointly consumed with another good. as a result there is an inverse relationship between a price change for one good and the demand for its go together good |
|
Definition
|
|
Term
| a market condition existing at any price where the quantity supplied is less than the quantity demanded |
|
Definition
|
|
