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Flashcards in Chapter 4 Terms Deck (14):
1

the amount of goods and services business firms are willing and able to provide at different prices

Supply

2

A law stating that the higher the price buyers are willing to pay, other things being held constant, the greater the quantity of the product a supplier will produce and vice versa

Law of supply

3

A tabular model noting the quantities of an item that suppliers are willing to produce at various prices

Supply schedule

4

A graph illustrating the quantities of an item that suppliers are willing to produce at various prices

Supply curve

5

A situation in which the change in the price of an item causes a change in the number supplied

Change in quantity supplied

6

the shifting of a supply curve that occurs when suppliers are willing to produce more or less of an item regardless of price

Change in supply

7

A leftward shift of the supply curve indicating a decrease in the quantity suppliers are willing to produce at any price

Decrease in supply

8

A rightward shift in the supply curve indicating a willingness of business firms to produce more of an item at any given price

Increase in supply

9

the price corresponding to the intersection of an item’s supply and demand curves; the price at which consumers are willing to buy the same quantity that suppliers are willing to produce

Market equilibrium price

10

the point at which the demand curve and the supply curve for an item intersect

Market equilibrium point

11

an excess of unsold products resulting from a price above the market equilibrium price

Surplus

12

A barrier preventing the price of an item from falling lower than a certain price

Price floor

13

A barrier preventing the price of an item from rising above a certain price

Price ceiling

14

an insufficient supply of an item as a result of a price below the market equilibrium price

Shortage