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Chapter 21 Vocab
Term | Definition |
---|---|
Damand | the desire, willingness, and ability to buy a good or service |
Demand Schedule | measure of responsiveness relating change in quantity demanded to a change in price |
Demand Curve | downward-sloping time 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 |
Mark Demand | the total demand of all consumers for a product or service |
Utility | the amount of satisfaction one gets for a good or service |
Marginal Utility | Additional use that is derived from each unit acquired |
Substitutes | competing product that consumers can use in place of another |
Complements | product often used with another product |
Demand Elastcity | measure of responsiveness relating change in quantity demanded to change in price |
Supply | the amount of goods and services that producers are able and willing to sell at various prices during a specific 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 quantity supplied at different possible prices |
Supply Curve | upward sloping line that graphically shows the quantities supplied at each possible price |
Profit | the money a business receives for its products or services over and above their cost |
Market Supply | the total of all the supply schedules of all businesses that provide the same good or service |
Productivity | the degree to which resources are being used efficiently to produce goods and services |
Technology | the methods or processes used to make goods or 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 US workers |