Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
EconomicsNicky Ch 2
Demand and Supply definitions
| Question | Answer |
|---|---|
| demand | the relationship between the various possible prices of a product and the quantities of that product consumers are willing to purchase |
| quantity demanded | the amount of a product consumers are willing to purchase at each price |
| law of demand | states that there is an inverse relationship between a product’s quantity demanded and its price |
| demand schedule | a table that shows possible combinations of prices and quantities demanded of a product |
| demand curve | a graph that expresses possible combinations of prices and quantities demanded of a product |
| change in quantity demanded: | the effect of a price change on quantity demanded |
| market demand | the sum of all consumers’ quantity demanded for a product at each price |
| demand factors | factors that can cause an increase or a decrease in a product’s demand |
| increase in demand | an increase in the quantity demanded of a product at all prices |
| decrease in demand | a decrease in the quantity demanded of a product at all prices |
| normal products | products whose demand changes directly with income |
| inferior products | products whose demand changes inversely with income |
| substitute products | products that can be consumed in place of one another |
| complementary products | products that are consumed together |
| supply | the relationship between the various possible prices of a product and the quantities of the product that businesses are willing to supply |
| quantity supplied | the amount of a product businesses are willing to supply at each price |
| market supply | the sum of all producers’ quantities supplied at each price |
| supply schedule | a table that shows possible combinations of prices and quantities supplied of a product |
| supply curve | a graph that expresses possible combinations of prices and quantities supplied of a product |
| change in quantity supplied | the effect of a price change on quantity supplied |
| supply factors | factors that can cause an increase or a decrease in a product’s supply |
| increase in supply | an increase in the quantity supplied of a product at all prices |
| decrease in supply | a decrease in the quantity supplied of a product at all prices |
| market equilibrium | the stable point at which demand and supply curves intersect |
| surplus | an excess of quantity supplied over quantity demanded |
| shortage | an excess of quantity demanded over quantity supplied |
Created by:
855205366
Popular Finance sets