| Question |
Answer |
| What is demand? | the amount of a good or service that consumers are able and willing to buy at various prices during a specified time |
| What is supply? | the amount of goods or services that producers are able and willing to sell at various prices during a specified time |
| What is a market? | the process of freely exchanging goods and services between buyers and sellers. |
| What is voluntary exchange? | basis of a market eco: a transaction in which a buyer and a seller exercise thier economic freedom by workoung out thier own terms of exchange |
| What is the law of demand? | economic rule stating that the quanity demanded andprice move in opposite directions |
| What is quantity demanded? | the amount of a good that a consumer is willing and able to purchase at a specific price |
| What is the real income effect? | economic rule stating that individuals cannot keep buying the same quanity of a product if its price rises while thier income stays the same |
| What is the substitution effect? | economic rule stating that if two items satisfy the same need and the price of one rises, people will buy the other |
| What is utility? | the ability of any good or service to satisfy comsumer wants |
| What is marginal utility? | an additional amount of satisfaction you get from buying more of a product |
| What is the law of diminishing utility? | rule stating that the additional satisfaction a consumer gets from purchasing one more unit of a product will lessen with each additional unit purchased |
| What is the demand schedule? | table showing quantities demanded at different possible prices |
| What is the demand curve? | downward sloping line that shows in graph form the quantities demanded at each possible price |
| What is a complementary good? | A product that relates well with another product |
| What is elasticity? | An idea dealing with a persons increase or decrease in the price of a product |
| What is price elasticity of demand? | Dealing with how much demand for products varies according to the change in prices |
| What is elastic demand? | the situation in which the rise or fall in prices greatly affects the amount that people are willing to buy |
| What is inelastic demand? | situation in which a product's price change has little impact on the quantity demanded. |
Beef Production
