Flashcards in Economics Final Deck (13)
The amount of a good that buyers willing and able to purchase
The quantity demanded of a good falls when the price of the good rises.
Law of demand
Movement along the demand curve. Caused by a change in the price of the product.
Change in quantity demanded
The amount of a good that sellers are willing and able to sell.
The quantity supplied of a good rises when the price of the good rises
Law of supply
Movement along the supply curve. Caused by a change in the price of the product.
Change in quantity supply
The price of any good adjusts to bring the quantity supplied and quantity demanded for that good.
Law of supply and demand
Tastes and preferences
Income of consumers
Related goods: substitutes + compliments
Expectations of future price changes
Size of population/market
Measurement of consumers' sensitivity to price
Elasticity of demand
Buyers are responsive to price changes
Buyers are not responsive to price changes( these goods are needed for survival)