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Chapter 21
Term | Definition |
---|---|
Demand | the desire, willingness, and ability to buy a good or serve |
Demand schedule | table showing quantities demanded at different possible prices |
Demand curve | downward sloping line that graphically shows the quantities demanded at each possible price |
Law of demand | the concept that people are normally willing to buy less of a product if the price is high and more of it if the price is low |
Market demand | the total demand of all consumers for a product or service |
Utility | the amount of satisfaction on gets from a good or service |
Marginal utility | additional use that is derived from each unit acquired |
substitute | a competing product that consumers can use in place of another |
complement | product often used with another product |
Demand elasticity | measure of responsiveness relating change in quantity demanded to a change in price |
Supply | the amount of goods and services that producers are willing and able to sell at various prices during a specified time period |
Law of supply | the principle that suppliers will normally offer more for sale at higher prices and less at lower prices |
Supply schedule | table showing quantities supplied at different possible prices |
Supply curve | upward-sloping curve that graphically shows the quantities supplied at each possible price |
Profit | the money a business receives for its products or services over and above its costs |
Market supply | the total of all the supply schedules of all the businesses that provide the same good or service |
Technology | the methods or processes used to make goods and services |
Productivity | the degree to which resources are being used efficiently to produce goods and services |
Subsidy | a government payment to an individual, business, or group in exchange for certain actions. |
Supply elasticity | responsiveness of quantity supplied to a change in price |
Surplus | situation in which quantity supplied is greater than quantity demanded |
Shortage | situation in which quantity demanded is greater than quantity supplied |
Equilibrium price | the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy |
Price ceiling | maximum price that can be charged for goods and services, set by the government |
Price floor | minimum price that can be charged for goods and services, set by the government |
Minimum wage | lowest legal wage that can be paid to most U.S. workers |