Chapter 3 Flashcards
(9 cards)
1
Q
market
A
where buyers and sellers exchange goods and services
2
Q
market economy
A
resources are allocated with no government interference, prices determined by supply and demand, buying and selling is voluntary
3
Q
firms
A
supply goods and services
4
Q
consumers
A
purchase goods and services
5
Q
exchange happens
A
prices established in market, by market–supply and demand can change market price
6
Q
competitive market
A
many buyers and sellers
7
Q
law of demand
A
inverse relationship between price and quantity demanded
8
Q
quantity demanded
A
Qd–amount of good purchased at a given price
9
Q
market demand
A
add individual consumers demand schedule horizontally
