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Ch.21
Term | Definition |
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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 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 services. |
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 change in price. |
Supply | The amount of goods and services that producers are able and willing 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 business 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 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. |