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Definition
| A market in which there are many buyers & sellers of the same good or service, none of whom can influence the price at which the good or service is sold |
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Definition
| A model of how a competitive market works |
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Definition
| Shows how much of a good or service consumers will want to buy at different prices |
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Definition
| The actual amount of a good or service consumers are willing to buy at some specific price |
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Definition
| A graphical representation of the demand schedule; it shows the relationship between quantity demanded and price |
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Definition
| A higher price of a good or service, all other things equal, leads people to demand a smaller quantity of that good or service |
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Term
| Shift of the demand curve |
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Definition
| A change in the quantity demanded at any given price, represented by the change of the original demand curve to a new position, denoted by a new demand curve |
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| Movement along the demand curve |
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Definition
| A change in the quantity demanded of a good that is the result of change in that good's price |
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Term
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Definition
| A rise in the price of one of the goods leads to an increase in the demand for the other good |
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Definition
| A rise in the pice of one good leads to a decrease in the demand for the other good |
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Term
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Definition
| When a rise in income increases the demand for a good |
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Term
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Definition
| When a rise in income decreases the demand for a good |
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Term
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Definition
| Illustrates the relationship between quantity demanded & price for an individual consumer |
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Term
| The _____ is a model of a competitive market - one in which there are many buyers & sellers of the same good or service |
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Definition
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Term
| The _____ shows how the quantity demanded changes as the price changes |
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Definition
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Term
| Relationship between quantity demanded & price is illustrated by _____ |
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Definition
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Term
| The _____ asserts that demand curves normally slope downward - that is, a higher price reduces the quantity demanded |
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Definition
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Term
| Increases or decreases in demand corresponds to _____ |
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Definition
| Shifts of the demand curve |
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Term
| A change in price results in a _____ - a change in the quantity demanded |
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Definition
| Movement along the demand curve |
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Term
| 5 main factors that can shift the demand curve |
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Definition
1. The price of a related good, such as a substitute or a complement
2. Income
3. Tastes
4. Expectations
5. Number of consumers |
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Term
| The market demand curve is the horizontal sum of the _____ of all consumers in the market |
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Definition
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Term
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Definition
| The actual amount of a good or service producers are willing to sell at some specific price |
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Definition
| Shows how much of a good or service producers will supply at different prices |
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Term
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Definition
| Shows the relationship between quantity suppled & price |
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Term
| Shift of the supply curve |
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Definition
| A change in the quantity suppled of a good or service at any given price |
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Term
| Movement along the supply curve |
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Definition
| A change in the quantity supplied of a good that is the result of a change in that good's price |
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Term
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Definition
| A good or service that is used to produce another good or service |
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Term
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Definition
| Illustrates the relationship between quantity supplied & price for an individual producer |
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Term
| The _____ shows how the quantity supplied depends on the price |
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Definition
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Term
| The relationship between quantity supplied & price is illustrated by the _____ |
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Definition
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Term
| A change in price results in a _____ & a change in the quantity supplied |
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Definition
| Movement along the supply curve |
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Term
| As with demand, increases or decreases in supply correspond to _____ |
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Definition
| Shifts in the supply curve |
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Term
| the market supply curve is the horizontal sum of the _____ of all producers in the market |
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Definition
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Term
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Definition
| the price at which the quantity of a good or service demanded equals the quantity of that good or service supplied |
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Term
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Definition
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Term
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Definition
| the quantity of a good or service bought & sold at the equilibrium price |
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Term
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Definition
| when the quantity supplied exceeds the quantity demanded |
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Term
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Definition
| when the quantity demanded exceeds the quantity supplied |
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Term
| price in a competitive market moves to the _____, or the market-clearing price, where the quantity supplied is equal to the quantity demanded |
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Definition
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Term
| the quantity at the equilibrium price is the _____ |
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Definition
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Term
| if the price is above the equilibrium level, there is a _____ that drive the price down |
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Definition
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Term
| if the price is below its equilibrium level, there is a _____ that drives the price up |
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Definition
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