| Question |
Answer |
| Market |
a group of buyers and sellers of a particular good or service |
| Competitive Market |
a market in which there are many buyers and many sellers so that each has a negligible impact on market price |
| Quantity Demanded |
the amount of a good that buyers are willing and ABLE to purchase |
| Law of Demand |
the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises |
| Demand Schedule |
a table that showsthe relationship between the price of a good and the quantity demanded |
| Demand Curve |
a graph of the relationship between the price of a good and the quantity demanded |
| Normal Good |
a good for which, other things equal, and increase in income leads to an increase in demand |
| Inferior Good |
a good for which, other things equal, an increase in income leads to a decrease in demand |
| Substitutes |
two goods for which an increase in the price of one leads to an increase in the demand for the other |
| Complements |
two goods for which an increase in the price of one leads to a decrease in the demand for the other |
| Quantity Supplied |
the amount of a good that sellers are willing and ABLE to sell |
| Law of Supply |
the claim that, other things equal, the quantity supplied of a good rises when the price of a good rises |
| Supply Schedule |
a table that shows the relationship between the price of a good and the quantity supplied |
| Supply Curve |
a graph of relationship between the price of a good and the quantity supplied |
| Equilibrium |
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded |
| Equilibrium Price |
the price that balances quantity supplied and quantity demanded |
| Equilibrium Quantity |
the quantity supplied and the quantity demanded at the equlibrium price |
| Surplus |
a situation in which quantity supplied in greater than quantity demanded |
| Shortage |
a situation in whihc quantity demanded is greater than quantity supplied |
| Law of Supply and Demand |
the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance |
Cardio Block2anatomy
