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Definition
| Most desired goods or serivces that are forgone in order to obtain something else.( what you have to give up to get it) |
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Definition
| Imbalance between our desires and available resources. Forces us to make an economic choice |
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| There is no such thing as a free lunch.. ppl face trade offs |
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Definition
| ability to produce a good at a lower opportunity cost than others could |
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Definition
| Ability to produce a good with fewer resources then other producers |
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Term
| production possibility frontier |
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Definition
| illustrates the trade-offs facing an economy that produces only two goods. The PPF shows the maximum quantity of one good that can be produced for any given production of the other. It assumes that all resources are used full and efficiently. |
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Term
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Definition
| a table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period |
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Definition
| a curve descrivign the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period |
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Definition
| the amount of a good or serive that conumers are willing and abot to buy at a given price. "quantity demanded" is an expression of consumer buying intentions |
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Term
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Definition
| quantity of a good demanded in a given time period increases as its price falls |
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Term
| A movement in the Demand curve is... |
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Definition
| a change in quantity demanded of a good that is the result of a change in price |
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Term
| shift of Demand curve.... |
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Definition
| change in the amount that conumers are willing to buy at each price |
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Term
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Definition
| goods that substitute each other; when the price of good X rises the demand for good Y rises, EX(pepsi for coke) |
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Term
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Definition
| Goods consumed in combination when the price of good X rises demand for good Y falls EX( cars and gas, pepsi and coke) |
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Term
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Definition
| goods whose demand increases when income increases.. or oposite |
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Term
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Definition
| goods whose demand decreases when income increases.. EX( bus ticket.. if you made money you would buy a car insead of a bus ticket) |
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Term
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Definition
| Curve Describing quantities of a good a producer is willing and able to sell at alternative prices |
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Definition
| the amount of a good or service that sellers are willing and able to to sell |
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Definition
| quantity of a good supplied in a given time period increases as its price increases |
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Term
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Definition
| movement along the supply curve is a change in quant supplied of a good that is the result of a change in that goods price |
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Definition
| A shift in supply curve is a change in the amount producers are willing to sell |
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Term
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Definition
| there is no tendency for either the price or quantity to change |
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Term
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Definition
| Price at which teh quantity of a good demanded in a given time equals quant demmanded |
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Definition
| The amount by which the quanity supplied exceeds the quantity demanded at a given price |
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Definition
| the amount by which teh quant demanded exceeds the quantity supplied |
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Term
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Definition
| A government imposed limit on how high a price can be charged (max legal price to help buyers) |
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Term
| What does price ceiling do |
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Definition
quant demanded increases
quant supplied decreases
creates shortages
may create black market |
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Definition
| govenment imposed limit on how low a preice can be charged |
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Definition
quant supplied increase
demanded decrease
surpluses created thus govt is forced to buy surplus |
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Definition
quant supplied increase
demanded decrease
surpluses created thus govt is forced to buy surplus |
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Term
| Price elasticity of demand |
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Definition
| which measures the response of consumers to a change in price |
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