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chapter 21
Term | Definition |
---|---|
Demand | The desire, willingness,and ability to buy a good or service |
Demand schedule | Table showing quantities demanded at different possible prices |
Demand curve | Downward-sloping line that graphically shows the quantities demanded at each possibles 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 one 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 able and wiling 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 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 its costs |
Market supply | The total of all the supply schedules of all the 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 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; situation in which government spends less than it collects in revenues |
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 |